The paradox of monetary incentives

AKA: money talks. Or does it?

I was involved in a work event recently that required each participant to learn and then use a certain type of problem-solving technique. Every few weeks we participants get together and a few people share the projects they've selected to use the new technique on. When we last met, I was intrigued with one of the projects in particular. This lady is head of HR for one of our production facilities, and the problem she is trying to solve involves the facility's incentive plan. The current plan involves a number scale. The better the performance, the higher the number. And the higher the number, the bigger the merit increase/bonus payout for the individual. Her problem, simply stated, is that her predominately older, seasoned production employees are not motivated by money.

This struck me as SO counter-intuitive as I sat listening to her presentation. I mean, who wouldn't want their performance to be rewarded with higher pay? It's incredibly important to me for my company to value me enough to continually bump up my salary. And, quite frankly, I can't imagine ever not feeling this way. The HR lady explained that most younger workers are absolutely motivated by monetary incentives. We want to be recognized, rewarded, and get those promotions. But older employees don't care at all about making more money. Which got me thinking. About my resolutions chart.

Right now I'm motivating myself with shopping money. In December when I crafted the chart, I couldn't wait to get started. I counted the check marks weekly to see if I was on track with the highest dollar level. I think I even gained a couple pounds from stuffing extra fruits and vegetables and fiber down my throat, all in the name of getting more check marks. But three months in, my shopping bank nicely padded, I find my motivation slipping a little. I mean, I already have a nice chunk of change built up, so I'm less inclined to worry myself much about reaching the highest dollar level each month. The middle and bottom levels seem perfectly adequate. Is this the seasoned production-worker effect? Maybe money only talks at first, and then you stop hearing it. Although that doesn't make a very good song.