Engagement and productivity are fickle things. No amount of money is going to motivate a person to be more productive. More content with renumeration, sure; but not more productive. Productivity is the measure of a person’s efficiency in completing a task.
To create a environment that encourages productivity, you need two things: first, you need the perception of progress. The human brain is wired to reward a person with gratification if there exists the sensation of completing a task and approaching a goal (so choose the right goal). Second, you need to remove all distractions. By removing distractions, I don’t mean you need to put blinds on the windows; I mean a person can’t be burdened with thoughts that impede focus. These thoughts can be interpersonal issues or job dissatisfaction from any number of issues.
It’s surprising how well you can motivate yourself or others by enabling a sense of progress and removing as much mental distraction as possible.