Money is Not a Good Motivator.

For years scientists were clear that two things power our behaviour – one is easy to understand, but the other is becoming murky.The first motivator is biological drive. Humans and other animals want to eat, drink and survive. Maslow talked about it in his hierarchy of needs, and we’ve likely all felt the “survival instinct” kick in at some point. It’s motivating.While the first motivator is internal, the second is external – the rewards and punishments that an environment provides for behaving certain ways. For example, if we study hard, school will give us a good grade. If we work hard, someone will give us a raise or the markets will be kind to us.But in 1949 a behavioural experiment took place that took the simplicity out of the motivators and is changing the way we look at what moves people. The Harlow Experiment* discovered that those two drivers – biological drive and external punishment or reward – didn’t account for all behaviours. Something else was going on.In his book, DRIVE: The Surprising Truth About What Motivates Us, Daniel Pink goes into real depth about the factors that are actually driving our behaviour (not the ones we think are driving it).Pink compares our theory of motivation to an operating system – one that is outdated, worked nicely for a period of time and is now woefully inadequate to address our current needs. It needs an upgrade, although there are elements that still work in certain circumstances.So what does all this have to do with money? And your family?In its simplest terms, motivating people with money rarely works as a complete solution. Pink refers to Motivation 3.0, which recognizes that, at our core, “human beings have an inner drive to be autonomous, self-determined, and connected to one another. And when that drive is liberated, people achieve more and live richer lives.”Decoded, it means that the real motivation, the motivation that truly propels people to high performance and incredible results, comes from the inside, not outside. It comes from something aspirational and self-directed, not from the carrot or stick of an outsider.It doesn’t mean that biological drives are now defunct, and it doesn’t mean that reward and punishment don’t have a place. What it does mean, however, is that powerful drive comes from liberating people, not cornering them.How does money fit into all this? It appears that the best way to use money as a true motivator is to take it off the table as an issue. Money, more often than not, serves as a de-motivator. It’s true that when people feel like they’re in survival mode financially, money will motivate them. However, beyond that condition, money becomes a motivator only by ensuring that it’s not a detractor. When we’re compensating someone appropriately for their role and contribution, it should sideline money as an issue and then let us move to the real motivators of autonomy, self-determination and being connected to others.The real motivators are being self-directed (not managed), being engaged (rather than compliant or obedient), and that we follow our natural drive to seek purpose – a drive that’s now being expressed on an unprecedented scale.What are some ways you can activate some of this drive? Here are three ideas from Pink:

1. Try giving people some “blocked time” where they can work on any project they want. Whether it’s your family, your heirs, or business colleagues, you can foster Motivation 3.0. It’s like “autonomy with training wheels” and sends a clear message that you trust them.
2. Take three steps toward giving up some control. Traditional leaders love control, but there are things you can do to shift that control to others. For example, involve other people in setting goals for the family, and experiment with using controlling language less often.
3. Change your pronouns. Start using “we” instead of “they” and listen for how much your family or your business team uses these different pronouns. “We” means we’re a part of it; “they” separates us and sees barriers.

Money is certainly in the motivation equation, but plays a much smaller role when we’re tapping into the big drivers that move people.Something to think about: When was a time in your life that you started to act with more autonomy? What happened as a result? Is that something you can foster in someone else?