Understanding Financial Motivation in the Workplace: Part 1
Explore how financial motivation drives success through the stories of historical and modern-day workers.
When I was a new driver in the 1990s, paying for gasoline was very confusing. When I went to the gas station, all the gas was labeled ‘89, ‘91, or ‘93. I thought these numbers referred to the year the gas was discovered (like, oh, the ‘91 reserve was a great year), and I couldn’t figure out two things:
There seemed to be a stopping point for the years, so why did they stop discovering gas?;
Being underage, I had “heard” that older wine was more expensive, so why was older gas less expensive? The connection between money and gas confounded me!
But some people have a more comfortable relationship with money.
Understanding Financial Motivation
We’re learning about the essential role that individual work motivations play in work performance. When reading the scientific literature on performance, 10 work motivations emerge. To manage people toward high performance is to manage their motivations. One of these core motivations is financial rewards.
Some employees are especially energized by the financial rewards they receive from their work. A big reason they work is for the money. Even though some workers hesitate to identify this motivation because it sounds shallow or greedy, there is no shame in it. Working for money can be as strong and noble a motivation as anything else.
Managing Financial Motivation
How can a manager proactively manage this motivation? Money can be an awkward conversation; it can feel easier to discuss, say, an employee’s drive to achieve or their sense of purpose. Managers may avoid discussing money because they think that the paycheck is the only leverage they have, and if they can’t change employee pay, then discussing it becomes an impossible conversation. Or they think that every conversation that touches on financial rewards will end in a request for a raise. They avoid managing the financial motivation altogether.
But, like it or not, the financial motivation is still there, and it's better to address employee motivations than neglect them. After all, neglectful treatment by a manager is worse for employee morale than negative treatment. The fact is, some employees are motivated by money, but that doesn’t have to be a stumbling block for managers. There are numerous ways to intentionally manage that employee motivation so the employee feels seen, heard, and valued, and at the same time, the manager feels empowered to lead.
The answer isn’t in the paycheck; it’s in what lies beneath the financial motivation. Instead of ignoring the drive for money, managers can understand the common themes of economic motivation and manage it in various ways. Let’s meet two workers–one from history and one from today–who are driven by financial rewards. We’ll understand their stories, find common ground, and learn how managers can manage this motivation.
Case Study: Shackleton the Explorer
Ernest Shackleton dreamed of being the first to walk across Antarctica because it had never been done before. He spent a few years gathering the finances, resources, and team to lead the historical expedition on the ship Endurance. The journey would be treacherous, with bitter cold and hazardous conditions, and there was no assurance of success. But in 1914, the 40-year-old Shackleton set sail with his crew of 27 men to be the first to walk across Antarctica.
The trip would become infamous for all of the challenges they faced, and many books would be written about it. One of them is Endurance by Alfred Lansing. (I felt pretty guilty reading it while sitting in my hot tub.)
Meticulously researched from firsthand accounts and diary entries, Lansing shares insights into Shackleton’s motivations for the trip.
Shackleton’s Motivation
What would compel him to risk such a journey?
Was it love for the outdoors?
Was it to advance scientific discovery?
Was it to fortify national interests on new land?
No, it was for money, and the lifestyle came with it.
According to Lansing:
“...Shackleton’s fundamental purpose in undertaking the expedition was simply the greater glory of Ernest Shackleton—and the financial rewards that would accrue to the leader of a successful expedition of this scope. Beyond all doubt, these motives loomed large in Shackleton’s mind. He was keenly aware of social position and the important part that money played in it. In fact, the abiding (and unrealistic) dream of his life—at least superficially—was to achieve a status of economic well-being that would last a lifetime.”
Lansing found that Shackleton was motivated by money and the lifestyle that came along with it. He needed to attempt a mission so grand that he could achieve lifetime financial well-being and heightened social status.
“He enjoyed fancying himself as a country gentleman, divorced from the workaday world, with the leisure and wealth to do as he pleased,” writes Lansing.
But in the end, Shackleton’s only motivation wasn’t just money and status. Another motivation fueled his work, which was critical to the crew’s survival. We’ll explore that later. But for now, let’s look at a modern-day worker motivated by financial rewards. Rather than conquering icy tundra, he’s taming Virginia lawns and getting green into employee bank accounts.
Case Study: Harley the Payroll Manager
Harley is a 25-year-old payroll manager who runs his lawn care business. Over four years, he has worked from part-time payroll clerk to full-time payroll manager. In addition to delivering payrolls, Harley has also developed several strategic financial products for the company. He is thriving in his role.
But if you ask him what got him here, it wasn’t the love of payroll.
Harley’s grandparents own rental properties, and being future-oriented, he also saw himself owning rentals. To prepare for that future business venture, Harley joined the payroll team to gain knowledge and skills in accounting. Now, he runs it. One of Harley’s life goals is to retire at age 50. He values earning money independently, so he still runs a lawn care business after being promoted to payroll manager.
Beyond his professional life, Harley is also deeply committed to his family. He wants to ensure his wife can stay home as they build their family. He has the strengths, mental acuity, and fortitude to succeed in payroll, but this isn’t where he wants to remain. Harley has already talked with upper management about increasing his role and reach in the company. He takes a strategic approach to money, believing that making a bigger impact will translate to higher pay, which will benefit the company, his family, and other life goals.
Converging Stories
Harley and Shackleton lived 100 years apart, but if you study their stories, you find similarities. The same is true for other modern-day workers I met. When I interviewed workers motivated by financial rewards, I found several common themes that can help managers lead employees driven by economic reasons.
Let’s look at four of them.
TO BE CONTINUED…