This should be an obvious part of most managers philosophy.
If the type of job your employees are doing (and type of people you are hiring) provides more value then monetary compensation that you should be aware of that.
This is especially true in software development where many developers would do it for the love of it, if their basic necessities are covered. Many other professions are the same.
But there a many more jobs (and employees) where this is not the case and money is the best motivator.
Just because I love developing software doesn't mean I'm willing to make you rich while I get a salary alone. The only people I know who are willing to do that are people who don't know their worth, people that aren't worth more than a salary, and people so new that they don't know any better.
I agree with you. I think the best developers should get paid accordingly.
I mean that managers should be aware that some workers are not directly motivated by money as some other job types. To get the most out of say, your developers, it might take more then money.
I enjoyed reading the book's case studies of companies where I would otherwise assume that "money is the best motivator": Men's Wearhouse, AES (a power company), NUMMI (a GM factory), etc.
If the type of job your employees are doing (and type of people you are hiring) provides more value then monetary compensation that you should be aware of that.
This is especially true in software development where many developers would do it for the love of it, if their basic necessities are covered. Many other professions are the same.
But there a many more jobs (and employees) where this is not the case and money is the best motivator.