Motivation is the reason people put effort into their work. A motivated employee turns up on time, works hard and takes pride in doing the job well.
The benefits of a motivated workforce
When workers feel valued they usually give more. Motivation tends to bring:
- Higher productivity, so more output per worker.
- Better quality and fewer mistakes.
- Lower labour turnover (fewer staff leaving) and less absenteeism.
Financial methods of motivation
These reward people with money. Common examples include:
- Wages and salaries – a fair, reliable income for the hours or role.
- Piece rate – pay per item made, which can raise output.
- Bonuses and commission – extra pay for hitting targets or making sales.
- Fringe benefits – non-cash extras such as staff discounts.
Paying a fair wage on time is not only good business, it is a matter of treating workers justly. Underpaying people may save money briefly but often leads to poor effort and high turnover.
Non-financial methods of motivation
Money is not the only motivator. Businesses also use:
- Praise and recognition for good work.
- Job rotation – swapping tasks to reduce boredom.
- Job enrichment – giving more challenging, responsible tasks.
- Teamwork and a pleasant working environment.
Motivation theories in outline
Maslow arranged human needs as a pyramid: basic (pay, safety) at the bottom, then social needs, esteem and finally self-fulfilment at the top. People are motivated by the next unmet level.
Herzberg split factors into two groups. Hygiene factors (pay, conditions) do not motivate but cause dissatisfaction if poor. Motivators (achievement, recognition, responsibility) genuinely drive effort. Taylor took a simpler view: workers are chiefly motivated by money, so pay per output.
A wise manager mixes fair pay with recognition and interesting work.
Put Maslow's levels of need in order, starting with the most basic:
- Basic needs (pay, safety)
- Social needs (belonging, teamwork)
- Esteem (recognition, status)
- Self-fulfilment (reaching full potential)