Motivated teams are essential to ensure the smooth operation of a company. Consequently, this good performance is directly reflected in the plans and goals achieved. But does motivation come from financial reward or public recognition?

Motivating teams is important for maintaining a company’s success. However, when it comes to how we can or should do it, there is a great deal of information and many possible approaches, and it can sometimes be difficult to understand how to do it effectively.

What matters most? Money? Public recognition? Extra rewards? Positions and status? There are many ways to motivate people, and it is not always easy to understand which approach is best for achieving strong performance from your team.

According to Jaeson Paul, Senior Strategist at CI&T, there is no perfect and fixed formula that works for every person, company or role. In his view, motivation is something we feel and have to find within ourselves, rather than something that someone else can simply make happen.

This may help explain why there is so much advice on the subject: none of it works entirely or effectively in isolation. However, if we look at the issue from the perspective of everyday life, we know that one of the most effective ways to persuade someone to do us a significant favour is to pay them. Several studies show that offering payment — or something of value — in exchange for a favour makes the other person more likely to accept the task.

Interpersonal relationships are the most effective key

Beyond financial rewards, people tend to go out of their way for those they like and respect. In this case, interpersonal relationships and team cohesion become some of the most important factors in a company’s success. This is because we naturally feel motivated to do things for the relationships and people we value.

Although hierarchies are important — or at least common — for structuring the logistics of work within a company, they do not reflect the value or merit of each individual. This is why it is so important to build connections between people and recognise their unique characteristics. Truly knowing the employee, from their soft skills to their hard skills, and acting accordingly is essential.

As Jaeson Paul states, there are no formulas or tricks that are 100% effective — only human relationships built on respect rather than power dynamics.