Studies in motivational theory have been around for years which generally agree that at a very basic level people need security first, not necessarily to motivate but to be in a position to be motivated. Repeatedly pay has been proven to be a poor motivator over time. By removing the basic insecurity that people face, you give them a chance to focus on actual motivating factors like job satisfaction, self-worth and realisation.
Studies in motivational theory have been around for years which generally agree that at a very basic level people need security first, not necessarily to motivate but to be in a position to be motivated. Repeatedly pay has been proven to be a poor motivator over time. By removing the basic insecurity that people face, you give them a chance to focus on actual motivating factors like job satisfaction, self-worth and realisation.