Intrinsic Ownership
People do not make rational decisions based on all the relevant data
It’s a shock, I know. People don’t actually work twice as good if you pay them twice as well. People don’t perform spectacular feats of imagination and problem solving when you promise them huge bonuses. Humans are a far more convoluted species with any number of fuzzy motivations that don’t map well to the almighty dollar.
The Agency
One of the greatest predictors of a person’s success is something called Internal Locus of Control. Basically it’s the belief (real or not) that what you do impacts the outcome of your situation.
We’ve established that people don’t actually just work for the money (don’t tell Wall Street) and in fact extrinsic motivations can actually hinder performance. So what do people actually work for? Intrinsic Motivation: Accomplishment, Recognition, and other things that may be personal like Knowledge in a person who loves learning.