Extra! Extra! Read All About It: Money Doesn’t Motivate

In a recent News Hour special report (“What Drives Motivation in the Modern Workplace?”) by Paul Solman, a counter-cultural point of view is explored. Part of this point of view is based on Daniel Pink’s two books, A Whole New Mind and Drive, and a look at Maryland-based System Source, a computer sales, service and consulting company. The point of view is that money doesn’t motivate employees.

Fifteen years ago, System Source quit paying commissions to employees. Why? It helped employees focus on customer needs instead of their own. System Source decided that commissions interfered with customer satisfaction. According to System Source CEO, Maury Weinstein: “We find that money often disrupts relationships.” In other words, money is a de-motivator. For System Source, the proof is in the pudding. As soon as commissions were shelved, sales at the company jumped 44%.

According to author Daniel Pink, System Source is leading what will become the new way for all workplaces. Employers are slowly realizing that money (Wall Street bonuses, for example) drives short-term thinking to an extreme, resulting in disaster. A long-term approach doesn’t produce quick money, only a better organization.

Money is important, of course, but the notion that it is THE thing that motivates people in the workplace is wrong-headed. It results in short-term wins, not long-term stability. According to this point of view, the primary motivators for most folks are working with people they like, doing something that’s interesting, and having a sense of purpose. Pink says: “This is not a plea for a kinder, gentler approach to business. This is a plea for saying, let’s wake up. Let’s get past our outdated assumptions, and let’s actually run businesses in concert with what the science shows about human performance.” A word to the wise?