By Andrew Woods

In the 1800’s, Jeremy Bentham, an English philosopher considered the founder of modern utilitarianism, theorized that all human action was driven by the avoidance of pain and the pursuit of pleasure. This theory is still very much around today, evidenced in a variety of ways in our companies, homes and institutions.

From Schoolyard to Workplace
As children we were introduced to this concept by our parents and teachers who offered us rewards, such as special privileges, prestige, and even money, for accomplishments such as good school reports. In the absence of such good school reports, the tactics of these key influencers would shift dramatically to groundings, extra work and disapproval.

We were introduced early on to the concept of the carrot and the stick. Troublingly, carrots will eventually leave you hungry and sticks raise more ire than inspiration.

While the carrot and stick concept has been the most widely used motivational technique on record, its effectiveness has diminished with the changing nature of the workplace and the world around us. The basic concept is rooted in rewards and punishments being applied to obtain a desired result, and is most often illustrated as the means of motivating a mule to move a cart.

For reasons obvious to HR and business leaders, that metaphor has grown increasingly out of date though yet adhered to by many organizations. Motivation is a major factor for success in business and in our personal lives and there have been many studies around it, yet there is no golden rule for motivating people and keeping employees engaged. While the effectiveness of motivational techniques differ between individuals and organizations, there are consistencies to be noted.

Uncovering Motivations True Driver
In his book best-selling book, Drive: The Surprising Truth About What Really Motivates Us, Daniel Pink explores the concept in more detail. Just as the world around us has changed, so too have our motivations. At first, as Pink explains, we were motivated by the need to survive. Then we began building civilizations, which required us to perform lots of repetitive tasks. Historically, the carrot and the stick has provided ample motivation.

However, things have changed in the new knowledge economy wherein repetitive tasks have largely been automated and there is strong emphasis on innovation. The trouble is that the old carrot-and-stick model doesn’t work when you want people to be creative.

Pink points out that artists are more creative when they are not working for money, and explains how, past a certain point, the carrot of money actually limits our thinking and productivity. when they’re not working for money. What really motivates people, Pink explains, is doing something they love. Helping people understand the impact of their work on the success of the organization is a major step towards igniting their creative efforts.

Courting the Creative Economy
According to Lewis Evans, CEO of Cogenica Media Inc., a creativity consultancy in Vancouver, BC, managerial styles need to change if companies want to compete in what he calls the ‘creative economy’.
“Carrots and sticks can be counter-productive when they are applied insensitively,” says Evans. “They represent a culture of ‘us and them’ in a world where hierarchies are becoming blurred and the best innovation is achieved through collaborative endeavour. What’s driving this change is the acute need for creativity, which has no hierarchy and thrives on inclusiveness and collaboration. You cannot beat creativity out of someone any more than you can motivate them to be creative using money.”

Developing a culture with creativity at its core is key.

Creative Cultures Key to Innovation
“Many high-profile organizations have failed to embrace more expansive, innovative thinking. Blockbuster, Borders Books and, more recently, Target in Canada are examples of a lack of creative exploration. On the other hand, with companies such as Apple and Google, we can see the huge dividends that result from a richly creative culture. Fostering this kind of culture is the key to success in today’s fast-moving business environment,” says Evans.

“A creative culture is very much an inclusive culture that has little to do with carrots and sticks and more to do with relationships, respect, tolerance, encouragement, flexibility and acceptance of ‘failing fast’. We must get over our fear of creativity with all its seeming chaos and ambiguity. It’s ironic that the idea of developing our creative intuition—a magical faculty that creates new neural pathways that can lead to true innovation—is counter-intuitive for so many of us. That said, embracing our unique creativity is what gives us our competitive edge, and the best chance of sustainable success.”

Old Ways, New Questions and Fair Play
According to Gregg Brown, senior learning and development manager at TidalShift, a Toronto-based training company, individuals are motivated for different reasons, and different types of situations require different types of motivation. Brown stresses that is not about whether using rewards and penalties is a good or bad idea, but ‘how’ the rewards and penalties are being used, what they actually are and if they are of value to the individual and the organization.

“We all want to be rewarded with something, whether it be a pay cheque or the feeling of accomplishing something meaningful and worthwhile. We all need ‘chunks’ of rewards to keep us going – it may be on a daily, weekly, monthly or yearly basis,” says Brown. “Organizations also need to have the ability to have ‘penalties’ or as I prefer to view them, accountability measures, in place. There is a consequence if you don’t show up at work on time. There is a consequence if you don’t adhere to the new process. Rewards and penalties need to be in place for organizations, but HOW they are used is the determinant of whether they motivate people or not.”

“Additionally, the perception of the rewards and penalties as useful and fair is important. If people perceive it as ‘dangling a carrot’ that keeps getting pushed farther out, they will be less likely to keep going. Striving for something we can’t attain just leaves us discouraged.”

While the carrot-and-stick approach worked well in the early 19th and 20th century, jobs in the modern era have changed significantly, become more complicated and more self-directed. This is where the carrot-and-stick approach has become unstuck. While pay and punitive measures will always be a part of the workplace, companies which adhere solely to such measures, are very likely to revisit their ROI in the near future.

Andrew Woods, MBA, CTP is a professional speaker, trainer and author of BOOM! Engaging and inspiring employees across cultures.

(PeopleTalk Spring 2015)