The question "Is Money a Motivator?" has been the subject of countless articles and books, debated among academics and management "experts" for decades and is almost always included as a topic in management and leadership development programs. As recently as March 2009, Forbes magazine included an article "Why Money Isn't a Motivator" (Jacobs) critiquing the current government bailouts and particularly the use of mandated caps are "self defeating", that "we are motivated by the work itself, not the reward" and that the current economic crisis offers us the opportunity to focus "not on the accumulation of wealth, but on community and public service".

We believe strongly that the question "Is Money a Motivator?" cannot be answered in a global sense, but rather must be addressed individually. Does the author in the Forbes article actually believe that his premise is accurate for a bond trader at Goldman Sachs? We think not.

One of the assessments we use in our consulting practice is "Workplace Motivators" which is based on the work of Eduard Spranger (1928) and refined by Allport and Bonnstetter. This assessment identifies six "values" or "attitudes: that act as individual motivators. While the top two motivators for each person move them into action, for simplicity in this writing we will refer only to a person's top motivator.

Is Money a Motivator? Yes for those with a top ranking on Utilitarian and Individualistic. Utilitarian is best defined as ROI - as it relates to money and the efficient use of time, energy, and resources. Most assuredly these individuals are motivated by money! Research has shown that 83% of top performing sales people have Utilitarian as their primary or secondary Motivator. Individualistic has to do with power and influence. Money is one of the ingredients in their tool kit to carry out thier mission to assert themselves and their mission.

Is Money a Motivator? No for those with a top ranking of Aesthetic and Social. The Aesthetic values form, harmony, beauty, and balance. Think "starving artist" and we have perhaps an extreme example of what motivates a high Aesthetic. The Social attitude emphasizes making the world a better place and eliminating hate and conflict through an inherent love of people. Perhaps this is the group the author of the Forbes article had in mind when he states that community and public service, not wealth, should be our focus.

Is Money a Motivator? Maybe for those with a high Theoretical or Traditional ranking. Theoretical focuses on truth and knowledge while a Traditional attitude focuses on principles and finding/following a system for living. Neither of these two attitudes specifically address the question of money as a motivator; hence we include them in the "maybe" category. To answer this question for these individuals we need to look at the secondary level of Motivators to move them into the Yes or No category.

Lesson for Managers

Managers must manage, and this includes knowing what motivators a job will provide and what motivators a person brings to the organization. Matching the two will result in "unleashing talent".

Is money a motivator for you?