Performance Management

High Salary Increase High Performance How Does It Transform?

Onur Ilkoz
January 9, 2024
5 min read
Share this post

For people, money is one of the motivational tools. The salary paid to the employee by the employer can have a great impact on his/her performance. The employee may even perceive his/her salary not only as money, but also as a sense of value and appreciation from the employer. According to a study published in the Harvard Business Review, highly paid employees are more motivated and perform better than their lower paid colleagues. However, when we consider that motivation is based on human needs, we cannot say that everyone needs the same thing. In other words, not everyone is motivated by money and high salaries.

To elaborate a little more; have you ever heard of a person who "changed his/her job despite being paid the same or a lower salary"? Have you witnessed "an employee whose performance decreased because someone less experienced than him/her received a higher salary"? If you were offered "a high salary opportunity on the one hand and career development and training opportunities on the other", which would you choose? The answers to these questions actually show that salary increase is not the only variable that directly affects employee performance. There are many variables such as fringe benefits, rewards and incentives, fairness of wages, valuing employees, contributing to their development and learning, etc., which can be linked to cause and effect to improve employee performance.

Many organizations make the mistake of paying their high-performing employees more or giving them high salary increases in order to retain them. Paying high wages to employees is important, but it is not enough to motivate them. Let's think of it this way: Let's say you have paid your employee the best you can in return for their high performance, do you know what will happen when they reach the satisfaction point, which we call the ultimate point? That high wage that you are constantly trying to satisfy your employee will no longer be important; your employee will see that there are more valuable things than high wages and will turn to that area.

When we look at Maslow's hierarchy of needs, while needs such as work and money are at the lower level, the need for self-development and self-actualization is at the higher level. In other words, after the employee reaches the financial freedom necessary for him/her, he/she will tend to realize his/her personal development and potential. At this point, what needs to be done is to know and analyze what your employees want, what they need and how they are motivated instead of promising high salaries. A Fortune 100 study conducted by the Great Place to Work Institute in 2022 showed that companies that "frequently listen to their employees, care about their development and strive to provide them with a better experience" have a 50% lower employee turnover rate and are 3 times more valuable than their listed peers. By interacting with your employees, you may find that recognition and appreciation of their achievements is more motivating than a salary increase. If we can provide you with more information on this topic or offer further solutions, please contact us at

Onur Ilkoz
Subscribe to newsletter
Please correct the marked field(s) below.
By subscribing you agree to with our Privacy Policy.

Experience our powerful engagement platform

Request a demo to see how our platform can benefit your organization

Stay Informed, Stay Inspired: Subscribe to Our Blog

Don't miss out on the latest insights and trends. Subscribe to our blog for a regular dose of knowledge, tips, and inspiration to fuel your professional journey.

By clicking Sign Up you're confirming that you agree with our Terms and Conditions.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.