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Nearly one in 4 American workers would take a pay cut in favor of more time off — and research says this could lead to better job performance

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Americans care more about work-life balance than money, according to research from Prudential. Getty Images
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If they had to pick, Americans today would rather have a life outside the office than a lofty salary, a new survey finds.

More Americans will choose a better work-life balance in place of more money, according to Prudential's Pulse of the American Worker survey conducted by Morning Consult in June 2019 and released by Prudential on August 22. In fact, nearly 1 in 4 workers would actually take a pay cut in favor of more time off.

The survey asked 2,000 full-time employees a series of online questions between June 3 and June 5, 2019.

The biggest factor in achieving a better work-life balance is having the flexibility to work from home or take time off. Outside of compensation, 48% of respondents to the Prudential survey said a flexible work schedule is the biggest factor to stay with their current employer, 35% said they value the opportunities to move into different roles in their organization, and 25% said they stay because of a supportive manager. 

Read more: While CEOs like Jack Ma and Elon Musk praise grueling job schedules, employees around the world are demanding shorter workweeks

It's not just workers desiring more of a life outside the office — science says employees can actually perform better by working less. Experts say shorter workweeks lead to more productivity, in part because workers have trouble concentrating on tasks for longer than three hours.

Science, too, suggests that money isn't always the best way to motivate workers. 

Here's why that is — and how employers can more effectively motivate their employees.

More Americans want a better work-life balance instead of higher pay.

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When asked why they left their last job, 41% of American workers said it was because their company did not offer enough balance between work and the rest of their lives, the report found. That's more than those who left due to receiving an offer for more money at another job — 36% left their old jobs due to getting a raise at their new company.

The US is notoriously worse at providing workers work-life balance than other countries: Americans work longer hours than most of the developed world. The US is the only developed country that does not mandate employers provide paid vacation or a form of parental leave.

Some companies are offering more time off in exchange for lower pay.

Jeff Bezos
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Amazon announced a pilot program in 2016 that would allow some part-time employees to work 30 hours a week for lower pay. (The company did not immediately respond to Business Insider reporter Peter Kotecki's request for additional comment on the current status of the program for a July 2018 story.)

Grey, a New York City advertising and marketing firm, similarly offered employees the option of a 4-day workweek in exchange for a 15% pay cut. The company hoped that shorter workweeks would lead to happier, more productive employees, regardless of the pay cut, Business Insider's Áine Cain previously reported in October 2018.

Research suggests that giving people incentives — like more money — to perform better only temporarily changes behavior.

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The go-to cliché for motivation is the carrot and the stick, with the carrot being the sweet reward and the stick the thwapping punishment. But like popular author Dan Pink argues in "Drive," that reward-and-punishment system might work for motivating people to do simple tasks, but it's not so great for getting people to do complex work over the long term. 

Psychological research has shown that rewards only yield "temporary compliance": Your behavior might change for a period of time, but it'll eventually slide back like so many failed diets. As social scientist Alfie Kohn has observed at the Harvard Business Review, rewards like money, vacations, banquets, and plaques do little in the way of changing people's attitudes. It's the same reason why offering incentives to quit smoking, lose weight, or use a seatbelt are terrible strategies for making long-term behavior change. 

"Incentives [...] do not alter the attitudes that underlie our behaviors," Kohn says. "They do not create an enduring commitment to any value or action. Rather, incentives merely — and temporarily — change what we do."

Paying employees more won't get them to work harder — but paying them too little will still discourage them.

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Salary is part of what management theorists call a hygiene factor, which also includes status, job security, work conditions, and how your manager treats you. While not having proper "hygiene" makes people feel demotivated at work, the theory goes, having lots of hygiene doesn't make you more motivated.  

"It is plausible to assume that if someone's take-home pay was cut in half, his or her morale would suffer enough to undermine performance," Kohn continues in his report for the Harvard Business Review. "But it doesn't necessarily follow that doubling that person's pay would result in better work."

Research suggests that giving workers tools for personal growth and recognition motivates them to perform better and increases job satisfaction.

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Unsurprisingly, the management literature calls them motivators: personal growth, recognition, responsibility, and challenging work.

"Motivation is much less about external prodding or stimulation," management sage Clay Christensen explains in a 2012 essay for Fast Company, "and much more about what's inside of you and inside of your work." 

In other words, the most motivated people aren't the best paid, but those who feel a connection with their work. 

As Harvard Business School professor Teresa Amabile has found, a sense of progress is crucial to actually staying engaged. In an experiment detailed in her book "The Progress Principle," she asked 238 employees across seven companies to keep daily diaries of their workdays. She found a pattern: 

"A close analysis of nearly 12,000 diary entries, together with the writers' daily ratings of their motivation and emotions, shows that making progress in one's work — even incremental progress — is more frequently associated with positive emotions and high motivation than any other workday event."

Amabile's work suggests progressing toward their goals, not pay, makes employees happier and better motivated.

Employers can better motivate workers by providing clear goals, as well as giving them the emotional support needed to reach those goals.

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The lesson here? Rather than structuring our workdays (and our employees' workdays) around rewards, we should instead structure them around continual, meaningful progress. For Amabile, the top two factors for supporting that continual progress are catalysts and nourishers. As she explained at Forbes

"The catalyst factor includes events that directly enable progress in the work. Catalysts include things like providing clear goals for the work and providing people with sufficient resources to accomplish those goals ... 
Nourishers directly support people's inner work lives and include actions like showing respect and providing emotional support."

Together, Amabile finds, the catalysts and the nourishers help shape a sense of progress. That leads to motivated, meaningful work for individuals — which makes employees happy and helps companies perform

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Drake Baer was Business Insider's editor-at-large, working across the newsroom to help produce ambitious journalism. For two and a half years before that, Baer served as deputy editor, overseeing a team of 20+ reporters and editors who cover the future of work, real estate, and small business. The fast-paced team was behind some of Insider's major packages in the last few years, including a state-by-state look into unemployment during the first year of the pandemic and in-depth profiles of "niche famous" characters such as real estate media tycoon Brandon Turner and HR icon Johnny C Taylor. They shed new light on big names, like Joe Biden, America's imperfect leader. He also cultivated thesis-oriented ideas journalism, whether it be on why "'diversity' and 'inclusion' are the emptiest words in corporate America" or why it's actually a horrible time to buy a house. (No, really, it is.) Before editing, his byline as a reporter was on the masthead for Fast Company and New York Magazine, covering the many intersections of social science, business, and economics. Baer has interviewed some our time's leading minds, including philanthropist Bill Gates, FiveThirtyEight founder Nate Silver, NBA champion and investor Steph Curry, "growth mindset" psychologist Carol Dweck, the rapper Q-Tip, Nobel laureate Daniel Kahneman, and the man who gave a name to "disruptive innovation," the late Clay Christensen.Baer has published two books, the most recent being Perception: How Our Bodies Shape Our Minds, with Dennis Proffitt. In 2014, New York Times bestselling author and Wharton professor Adam Grant highlighted his first book, Everything Connects, as one of the 12 business books to read that year. He has been featured as a speaker at the Aspen Ideas Festival, presented at TedX Princeton, and moderated many panels.  
Allana Akhtar was a senior health reporter for Insider, where she covers the emerging wellness industry and general health topics. During the COVID-19 pandemic, Allana wrote extensively about nurses, mask mandates, the vaccine rollout, and disparities in access to health. Her articles include features on nurses needing to re-use PPE in the early days of the pandemic, ones who struggled to get paid time off after getting COVID-19, and those who left bedside care after grueling pandemic working conditions. Allana also spoke to flight attendants and retail workers who faced violence as they enforced mask mandates, and community health workers who said they struggled to receive equitable vaccine access during the initial rollout. Allana now reports on emerging trends within the wellness industry, including the Westernization of indigenous medicine and dangerous wellness trends spread through social media. She also writes about plastic surgery, racial disparities in healthcare, and breaking health news. Allana has won numerous awards for her work, including the Best News Story by the Michigan Press Association in 2015, Best Reporter Covering Nurses in 2019, and the Morris and Lola Wasserstein Award for her contribution to the the University of Michigan's student paper as an Honors student. Before Insider, Allana wrote for USA TODAY, US News & World Report, Money Magazine, Health Magazine, Jalopnik, and more. You can email her at aakhtar@jkmperu.com, call/text her at (646) 376-6058, or follow her on Instagram, TikTok, Twitter, and LinkedIn. Secure tips line: Signal # 248 760 0208'We're grossly unprepared': Nurses share their frustration as the coronavirus spreads with little direction from the government or hospitals on how to mitigate it'Sexy nurse' costumes demean one of the most in-demand professions in American life — and they're a bestseller on Amazon right nowFlight attendants describe 'unprecedented' violence as travel returns and passenger aggression soarsG/O Media fired a queer employee of color who wore crop tops, shorts, and heels to work, violating a brand-new dress code that others say they routinely violated without being punishedContractors at controversial startup Rev say they worked long hours for little pay, feared they could lose their job at any time, and had to transcribe interviews with sexual-abuse survivors without warning