"Emotional Reactions to Raises" vs. "Emotional Raises"
I'm going to put off (for a day) Post #3 on the CEE Conference, because I saw two interesting articles this morning with a little "word play" connecting them. One talking about emotional reactions to raises (and how do we prevent ourselves from "oversplurging"), and a second talking about how with companies tightening their budgets and bottom lines, "emotional raises" (non-monetary rewards) are becoming more of a thing for some workers.
Jay LeBlanc
11/15/20254 min read
Article #1 on Our Emotional Reaction to a Raise (or other financial windfall):
As I mentioned above, I saw this first article in my e-mail feed this AM - I've been on Kumiko's feed since I reviewed her book "My Money, My Way: Taking Back Control of Your Financial Life" in early 2024 as part of a PD session on new ECON/PFL books. She sends out one free newsletter article each Friday (if interested, you can sign up at the bottom of her main website page below).
Normally she alternates between specific savings strategies or opportunities (I will have another of her newest posts in my list of Thanksgiving resources this weekend) and articles like this one on how to change your mindset about money. If you are interested in seeing (or reading) more, here's a link directly to her website - https://thebudgetmom.com/
So here are a couple of interesting quotes from the article, written by Kumiko Love (known online as the "Budget Mom") . . .
"When your income grows, your mindset has to grow with it. Most people assume that more money automatically means more peace or happiness, but without intention, it often just leads to more spending. This is what psychologists call hedonic adaptation, which means we quickly adjust to a higher standard of living and then start craving even more."
Or this quote, "The psychological shift after a raise is not about learning how to spend more. It is about learning how to hold more — more responsibility, more options, more power over your choices. When you slow down and realign your values, your income becomes a tool for fulfillment rather than a trigger for impulse. That is when a raise becomes something life-changing instead of just lifestyle-changing."
So here are her 4 suggestions - I will let you click on the article (below) for more details:
Revisit your values, not just your budget
Create a plan before your lifestyle catches up
Let yourself celebrate, just not all at once
Reflect on what money means to you now
Article #2 on "Emotional Raises":
The second article was not released today, but was linked in a different e-mail I received this morning. It comes from an HR expert (so obviously a business-centered viewpoint) but caught my eye because of the word alliteration so close to the first article. I want to balance this one, so first a couple of interesting quotes from this article written by Hannah Yardley for HR Morning . . .
"In today’s competitive job market, the best employers offer more than a paycheck – they offer a comprehensive package that meets employees’ diverse needs. That’s an emotional salary, and it might be the most valuable raise employers can offer . . . It’s the non-monetary parts of an employee’s job – factors like meaningful recognition, flexibility, career development, a sense of belonging, and a work culture that aligns with the individual’s values."
"This isn’t about replacing financial compensation – it’s about rounding out the full picture of what makes work worth it. Emotional salary is the reason someone stays through a tough quarter. It’s why they go the extra mile, even in times of uncertainty. It’s what turns a good job into a great one."
While that might sound good, we also know that "emotional raises" are much harder to quantify in a written employment contract or maintain when perceived business priorities change. The past two years have seen plenty of examples of companies changing their "back to the office" policies, for example. So I looked for another article with a little more balance on the bigger issue of "emotional raises".
This graphic is from a New York Post article
last year on workplace appreciation, based on
a survey conducted by Motivosity and OnePoll
(article is linked below). What seems clear is
while the "emotional raises" are important
and may help retain long-term employees,
tangible financial incentives still matter most
to the majority of employees.
Articles on our Emotional Reactions to a Raise (or other financial windfall):
"The 7 Percent Mystery: What Really Counts as a Pay Raise? Understanding the psychological impact of salary increases", Psychology Today, Nov 2023, https://www.psychologytoday.com/us/blog/of-leaders-and-traits/202311/the-7-percent-mystery-what-really-counts-as-a-pay-raise
"9 Ways to Spend a Windfall Wisely", U.S. News and World Report, Oct 2024, https://money.usnews.com/money/personal-finance/articles/spend-a-windfall-wisely
"How to Successfully Manage a Major Financial Windfall", Mercer Advisors, Jun 2024, https://www.merceradvisors.com/insights/so-you-just-received-a-financial-windfall/
"MIT neuroscientist: Here’s exactly what happens to your brain when you receive a financial windfall", CNBC - Make It, Nov 2023, https://www.cnbc.com/2023/11/15/mit-neuroscientist-3-remarkable-things-that-happen-to-your-brain-when-you-get-rich.html
"Q&A: The Emotional Aspects of an Increase in Salary", The Budget Mom, Nov 2025, https://thebudgetmom.activehosted.com/index.php?action=social&chash=ffeabd223de0d4eacb9a3e6e53e5448d.621&nosocial=1
"When a Raise Feels Wrong: The Realities of Being Overpaid and The Hidden Stresses of Earning More Than You Think You Deserve", McGrawHill, Jun 2025, https://www.mheducation.com/highered/blog/2025/06/when-a-raise-feels-wrong-the-realities-of-being-overpaid.html
"Emotional Salary" Articles and Resources:
"Companies are beefing up 'emotional salary' to address today's disengaged workers", Fox Business, Jul 2024, https://www.foxbusiness.com/lifestyle/companies-beefing-emotional-salary-address-disengaged-workers
"Emotional salary: 4 ways to get it right", IFeelOnline.com, Oct 2021, https://ifeelonline.com/occupational-health/emotional-salary/
"Is ‘Emotional Salary’ the New Pay Bump?", HRMorning.com, Aug 2025, https://www.hrmorning.com/articles/emotional-salary/
"The Remote Work Paradox: Higher Engagement, Lower Wellbeing", Gallup Polls, May 2025, https://www.gallup.com/workplace/660236/remote-work-paradox-engaged-distressed.aspx
"What is emotional salary at work: examples & top tips to improve emotional engagement in 2024", CultureMonkey.io, Aug 2024, https://www.culturemonkey.io/employee-engagement/emotional-salary/
"Employed Americans say this is more meaningful than a raise", New York Post, Feb 2024, https://nypost.com/2024/02/27/lifestyle/employed-americans-say-this-is-more-meaningful-than-a-raise/
