Laura Vanderkam reviews Daniel Pink's Drive:
The best motivation, [Pink] suggests, is intrinsic, that is, when people want to do the work because they find the work itself fulfilling. That doesn’t mean such workers don’t want to be paid well. They do, of course, and they also like free coffee and in-office massages as much as anyone else. But leaders who understand this higher level of motivation compensate people in a way that “takes the issue of money off the table, so they can focus on the work itself.”
They pay their employees well for their industry, but equally important, people aren’t pitted against one another through compensation schemes that pay some people way more than others for the same work. These leaders create an environment where people want to do their best. This involves giving people lots of autonomy over their time, their tasks, their techniques, and their teams; providing them an opportunity to work toward mastery of their professional craft; and imbuing their work with a sense of purpose.