Is money a good motivational tool?

It’s no doubt a convenient way of gauging how well we are performing, since we all have the tendency to quantify and measure the things we do. However, money is seldom a good motivator in the grand scheme of things.

By using money as the ultimate benchmark, we can easily lose heart when the money doesn’t seem good anymore, although it doesn’t actually meant that we are underperforming. We quickly conclude that if there’s no monetary value in what we do, it’s hardly worth doing anymore. And hence, we stop going the extra mile.

Every corporations must be profitable. But profit should not be the ultimate goal. Success is not because you are the most profitable in the industry. By making profit the ultimate aim, it’s easy to lose track of one’s purpose. Compromising becomes a habit. You start compromising ethics, quality and eventually your own values in the pursuit of illusive gains. Make enough profits, but focus hard on improving your art, and before long, you’ll find that you don’t have to worry about profit.

It also explains why financial incentives is seldom a good way to reward employees. You can’t buy loyalty, just like you can’t buy true friendship.

When was the last time you are motivated by money? What was the outcome?

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