Though there are many reasons why people work for a living, it is undeniable that money, or other financial rewards, play a key role in motivating people in the workplace.
There is a wide variety of ways in which a business can offer money (or "financial rewards") as part of the "pay package", including:
In most cases, an employee might expect to have a mixture of the above in a pay package.
How important is money as a motivator? It is widely accepted that poor or low pay acts as a de-motivator. Someone who feels undervalued or under-paid may soon leave to find better-paid employment. However, it is less clear that paying people more results in better motivation.
For most people, motivation (the will to work) comes from "within". More money can help us feel better about out work, but it is unlikely to encourage us to work harder or to a higher standard.