Supervisor ratings of employees' motivation and adjustment in psychiatric rehabilitation settings are among the best predictors of future work potential (Anthony and Jansen, 1984). Additionally, some research reports low correlations between supervisor ratings and employee self-reports with regard to adjustment and motivation. Consequently, we examine (a) how current program participation and estimates of readiness for competitive employment relate to employee and supervisor ratings of motivation; and (b) the correlates of rating discrepancies between employees and supervisors. Program participation and work-readiness were associated with both employee and supervisor ratings of motivation after controlling for employee benefit plan, residential status, and social adjustment. Additionally, the degree of supervisor-employee discrepancy in these ratings was negatively correlated with program participation, work-readiness, and estimates of premorbid social competence. The role of motivational factors in vocational rehabilitation and the dynamics of supervisor and employee perceptions of work motivation and adjustment are discussed.