Foundation 15 of 20 · Lead
Coins Get People to Show Up. Respect Gets Them to Stay.
"How do I get people to work as hard as I do?" If you gave a raise and good people quit anyway, the money was not the problem. Here is how to motivate employees with the rewards that actually keep them.
Last Updated: 10/25/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
What Is the Difference Between Intrinsic and Extrinsic Motivation?
Textbook Definition
Extrinsic motivation is driven by external rewards such as pay, bonuses, and promotions. Intrinsic motivation is driven by internal rewards such as pride, mastery, autonomy, and a sense of purpose in the work.
In Plain English
Extrinsic rewards come from outside: pay, raises, bonuses. Intrinsic rewards come from inside: pride in the work, getting better at it, and knowing it matters. Fair pay gets people in the door. The inside kind is what makes them stay.
Why It Matters
Why Does a Raise Not Fix a Motivation Problem?
Pay matters. If you pay people unfairly, nothing else you do will fix it. But once the pay is fair, more money rarely makes anyone stay. People leave jobs for reasons they almost never say out loud, and the boss is usually the last to know, because the boss is the one they would have to tell.
Most of those reasons are things you can fix for free: a real thank-you, a say in how the work gets done, a chance to get better, and a boss who backs them up. Telling someone, by name, exactly what they did well is called recognition. Keeping good people from leaving is called retention. They are connected.
Signs you have this problem:
- You only talk to employees when something is wrong.
- You gave a raise and the person left anyway.
- Employees know a better way to do the work and never mention it.
- You let a difficult customer abuse your staff because the account is big.
- Nobody can tell you whether they are getting better at their job.
- Good people leave and never say exactly why.
What It Looks Like
What It Looks Like When Money Is the Only Reward
From the Fabled Forest · Chapter 15
Dumpster Dani's best drivers, two quiet possum brothers, had driven for her for six years. When one said he was thinking about leaving, she gave them both a raise. They quit anyway, for a freight company that paid more. Dani was sure it was the money.
Then they quit the new job after eleven days. Dani drove to their burrow, sat on their couch, asked why they had left, and did the hardest thing she had ever done: she stayed quiet while they answered.
It was not the money. It was a list of things Dani had never noticed, starting with a customer who had been yelling at them for three years. None of the fixes cost a coin. One of them cost her a great deal more.
The possum brothers' story is Chapter 15 of Management and Leadership for Small Businesses, Book 1 of Dr. Paul's Fabled Forest Business School Series.
The Fix
How to Motivate Employees in 4 Steps
Most of what keeps good people costs nothing. One part may cost you a customer.
Make sure the pay is fair, then ask and listen.
Check your pay against the market first. Then ask each person what they like about the work and what frustrates them. Then be quiet while they answer. That is the hard part.
Thank people for specific things, by name.
Not "good job." Say exactly what they did. "You stacked the flour so it would not tip on the hill road" is remembered. "Good job" is forgotten by lunch.
Give them a say in how the work gets done.
The people doing the job often know a faster way. Ask. Use it. Give credit for it out loud.
Protect them from customers who abuse them.
Even a big customer. Especially a big customer. If you will not back your people up, they will find a boss who will.
Dr. Paul's Insight
Where most owners slip is assuming a raise will fix a respect problem. It will not. Across 1,000+ clients, Dr. Paul has seen the same pattern: the employees who stay are the ones who are trusted, thanked for real things, and given room to grow. The ones who leave usually never say why.
Sample: The Five-Line Motivation Check
Go through this for each person on your team. Be honest. If you do not know the answer, that is the answer.
| Fair pay | Is their pay fair for the market and the work? Check it, do not assume it. |
| Respect | When did you last thank them for something specific, by name? |
| A say in the work | Have you asked how they would do the job better? Did you use it? |
| A chance to grow | Do they know what they are getting better at, and what is next? |
| A reason it matters | Do they know who their work helps, and why it counts? |
Sample for illustration. Any line you cannot answer is where to start.
The Shortcut That Costs More
Pay More and Demand More Hours?
In the book, a company called Talon and Beak keeps offering owners shortcuts. Every one is legal. Every one sounds reasonable. Every one costs more than it saves. Here is the one in Chapter 15.
Pay more money, demand more hours, and replace whoever burns out.
There is always somebody who wants the extra money this week.
You rent people's effort instead of earning it. Nobody stays, and nobody ever tells you why they left.
Money buys attendance. It does not buy effort, ideas, or loyalty. Those come from respect, trust, and a reason to be proud of the work.
Watch
Video: How to Keep Good Employees
How to Motivate Employees: Intrinsic vs. Extrinsic Rewards
Dr. Paul walks through the five-line check and how to give recognition that sticks.
From the Book
When Do They Find Out They Did a Good Job?
Chapter 15 · Employee Motivation
The Drivers Who Quit: A Raccoon's Revolving Door
"Dani," said Doctor Owl. "When the brothers do a good job, how do they find out?"
Dani frowned. "What do you mean?"
"Do you tell them?"
"They know they're doing a good job. If they weren't, I'd tell them."
"So you speak to them when something is wrong."
Dani started to answer and stopped.
What did the brothers finally tell Dani, and what did it cost her to fix it? Find out, and get the five-line scroll, in Chapter 15. Book 1 of Dr. Paul's Fabled Forest Business School Series.
Get the Book on Amazon →FAQ
Employee Motivation Questions
What is the difference between intrinsic and extrinsic motivation?
What is employee recognition?
Is pay the best motivator?
How do you improve employee retention?
Keep Going
Related Foundations
Motivation connects to four other foundations. Most of them are about how you treat people every week. New to a term on this page? Every one is in the small business management glossary.
Foundation 8 · Leadership Styles
Match how you lead to the person and the task.
Foundation 12 · Recruitment and Selection
Keeping people starts with hiring the right ones.
Foundation 14 · Conflict Resolution
Back your people up when conflict comes from a customer.
Foundation 19 · Performance Feedback
Say what is going well every week, not once a year.
Written by Dr. Paul Borosky, DBA, MBA, business consultant, author, and educator with 14+ years and 1,000+ clients served. Want help figuring out why good people keep leaving? Dr. Paul works with owners one-on-one.
This page is for general educational purposes only. It is not legal, financial, tax, accounting, or other professional advice. Dollar figures are illustrations. The Fabled Forest and its characters are fictional. For decisions about your own business, consult a qualified professional.