Why Cash Incentives Makes You Less Creative

Dan Pink makes a great case that monetary rewards do not always lead to top performance. In fact studies have shown that for cognitively difficult tasks, higher monetary incentives lead to poorer performance. I agree that intrinsic motivation is more effective than extrinsic motivation. I wrote a research paper when I took Consumer Behavior about intrinsic vs extrinsic motivation and major selection. Our team concluded that students that were more motivated by extrinsic motivation would pick more practical majors that didn’t align with their favorite courses. Dan Miller says that “money is ultimately never enough compensation for your time and energy”. I think that we should encourage others to follow their passion because they will be more happy as well as more productive.