504
PART 4 THE INDIVIDUAL
MANAGEMENT IN ACTION 12.1
Developing reward strategies to motivate and compensate
knowledge workers
Mahen Tampoe
Introduction
This is a synopsis of research-based findings on the motiv-
ation of knowledge workers and suggests that current reward
strategies fail to excite the intrinsic motivational drives of this
category of staff; furthermore, it suggests that in certain cir-
cumstances current reward strategies are counter-productive.
It then goes on to offer a motivation and performance model
which links reward strategies, organisational climates and
individual competencies and to suggest actions which organi-
sations can take to realise the promise of this model.
Knowledge workers– who are they?
Knowledge workers are those who apply their theoretical and
practical understanding of an area of knowledge to produce
outcomes that have commercial, social or personal value.
They are likely to be drawn from a wide variety of profession-
ally qualified and scientifically trained staff. Among them
would be: doctors, scientists, computer specialists, personnel
professionals, qualified accountants, managers, project man-
agers and supervisors of knowledge workers who themselves
have been promoted from being technologists to managers.
Characteristics of knowledge workers
Certain characteristics of knowledge workers differentiate
them from other process dominant workers. While some of
these are to do with their education and training, others are to
do with the standards and expectations of their profession.
Their work can also be distinguished in different ways.
Namely, their work is:
■ unlikely to be routine or repetitive;
■ carried out to professional or quality standards and sub-
ject to these as well as the organisation’s own standards
of verification and approval (sometimes resulting in a con-
flict between work and professional standards);
■ aimed at meeting operational or strategic targets derived
from project objectives or established as part of a prob-
lem-solving activity;
■ intrinsically motivational and provides the inner drive (as
opposed to external stimulus) for creative achievement;
■ continuously developing their knowledge and skill in their
chosen area of expertise;
■ amenable to self-management;
■ not easily supervised, partly because of the specialist
nature of their work and partly due to the fact that their work
is not amenable to physical observation and measurement;
■
less easy to procedurise and/or quantify, making it often more
difficult to specify clear unambiguous performance targets;
■ likely to have areas of high ambiguity, and to be suscepti-
ble to many different yet feasible solutions and outcomes.
Motivators for knowledge workers
Based on research carried out by the author, the work of other
researchers and from personal experience of managing IT pro-
fessionals over many years, the rewards and expectations of
these knowledge workers can be summarised as a mixture of
the following:
■ personal growth, especially self-development rather than
growing managerial or professional skills;
■ autonomy, which gives them the freedom to work within
the rules rather than working to rule or being allowed to
define their own rules;
■ creative achievement, where the work is of commercial
value rather than meeting assigned targets or being work
that is intellectually stimulating but not of commercial value;
■ financial rewards, where salary plus bonus on personal
effort is valued more than salary plus bonus on group
effort or purely receiving a salary and fringe benefits.
Financial rewards played a very small part in this as most of
those who supported the research study were in well paid
jobs and were seeking self-actualisation rewards.
The strength of preference shown for these different moti-
vators and the findings of other researchers in this field over
the last 50 years suggest that the law of diminishing returns
applies very definitely to financial incentives. However, when
it comes to intrinsic incentives such as personal growth, cre-
ative achievement and autonomy, the law of escalating
returns seems to apply. This is most pronounced in the area
of creative achievement where the more they get the more
they wish to get. The expectancy theory of motivation
(Vroom, Porter and Lawler among others) suggests that
reward strategies should be designed to optimise these inher-
ent and intrinsic motivational drivers while allowing for
Herzberg’s theory of dissatisfiers and satisfiers.
Theoretical fit
Motivational researchers and theorists who have studied the
motivation of knowledge workers agree that the Expectancy
Theory of motivation is the most appropriate for this category
of employee. The application of expectancy theory in reward
strategies does suggest a very close and intricate link
between rewards, the likelihood of earning those rewards and
the realisation of those rewards, if performance is delivered.
Based on my research and developing on others, it is possi-
ble to hypothesise a motivation and performance model. The
model suggests that the creative energy of people needs to
be applied to task achievement through the application of
their personal capability and the organisation’s strengths,
usually made up of resources, peer support, management
support and finances.