Motivating employees

• Motivation


  The inner desire or willingness that drives a person to take action and achieve a specific goal or outcome
• Intrinsic motivation


  Motivation coming from within a person (values, beliefs etc)
• Extrinsic motivation


  Motivation coming from external factors (rewards or punishments)
• Why people work


  • To earn a wage or salary
  • To give them purpose
  • To pursue aspirations
  • To provide security
  • To work with others
• Motivated employees


  • More productive and efficient
  • Engaged in their work and use their initiative to meet or exceed their goals
  • Generate higher levels of output and quality
  • Lower labour turnover rates
  • Take pride in their work, show up on time, meet deadlines and take fewer sick days
• Increased productivity


  Higher profits for the business
• Lower turnover rates


  Reduced need for costly recruitment and training
• Motivated employees


  Increased trust between the business and its employees and encourages a positive organisational culture
• Maslow's Hierarchy of Needs Theory


  Argues that people move through levels of needs that motivate them and once a need is met it no longer serves to motivate
• Taylor's Scientific Management Theory


  States that workers are motivated mainly by pay and need tightly-defined tasks and close supervision
• Herzberg's Two Factor Theory


  Believes that money is not a motivator but that the lack of money leads to dissatisfaction, whereas workers are motivated by factors such as the opportunity to develop their skills
• Maslow's Hierarchy of Needs

  • Physiological needs
  • Safety needs
  • Love/belonging needs
  • Esteem needs
  • Self-actualisation needs
• Physiological needs


  • Businesses can provide necessities for their employees eg comfortable work environment, access to clean water and food, and adequate rest breaks
• Safety needs


  • Businesses can provide job security, fair pay, benefits, and safe working conditions for their employees
• Love and belonging needs


  • Businesses can encourage teamwork and generate a sense of community and belonging within the workplace
• Esteem needs


  • Businesses can provide recognition for employees accomplishments, and provide a positive work culture that values individual contributions
• Self-actualisation needs


  • Businesses can help employees achieve this need by offering opportunities for employees to pursue their passions and interests
• Taylor's Scientific Management Theory


  Focuses on breaking down complex tasks into simpler ones, standardising work processes and providing workers with clear instructions and training to achieve maximum efficiency
• Taylor's Theory of Motivation


  1. Study and analyse the work process

  2. Standardise the work process

  3. Select and train workers

  4. Provide incentives for performance
• Herzberg's Two-Factor Theory


  Suggests that there are two influencers that determine employee motivation and job satisfaction - hygiene factors and motivators
• Hygiene factors


  Elements that do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction which decreases motivation
• Motivators


  Elements that lead to job satisfaction and motivation
• Improving hygiene factors


  Decreases job dissatisfaction
• Improving motivator factors


  Increases job satisfaction
• Increased satisfaction


  Increased productivity and profitability
• Hygiene factors


  • Working conditions
  • Coworker relations
  • Policies and rules
  • Supervisor quality
  • Base wage, salary
• Motivator factors


  • Achievement
  • Recognition
  • Responsibility
  • Work itself
  • Advancement
  • Personal growth
• Improving the hygiene factors decreases job dissatisfaction
• Improving the motivator factors increases job satisfaction
• Increased satisfaction leads to increased productivity and profitability
• Using Hygiene Factors to Decrease Dissatisfaction

  1. Pay fair wages/salaries

  2. Offer excellent working conditions
• Using Hygiene Factors to Decrease Dissatisfaction

  Offer employment contracts which provide job security
• Using Motivating Factors to Increase Satisfaction

  1. Build a recognition and rewards culture

  2. Offer opportunities for growth and development

  3. Provide challenging work which requires problem solving
• Using principles gained from these three motivational theories can help wise managers to increase motivation, raise productivity and decrease business costs
• Financial incentives


  • Remuneration
  • Commission
  • Bonus
  • Promotion
  • Fringe Benefits
• Remuneration


  The basic wage or salary that a worker receives for their labour
• Commission


  A percentage of sales revenue paid to workers who sell products or services
• Bonus


  An additional payment given to staff awarded for achieving specific goals, completing projects on time or exceeding performance expectations
• Promotion


  The opportunity to earn more money by taking on a higher level of responsibility
• Fringe Benefits


  Additional benefits usually offered to salaried employees, such as the use of a company car, private healthcare or gym membership