Employee Motivation

What is the Employee Motivation? What factors are motivating employees?

Employee Motivation

People are considered to be the most important asset of an company. All fixed assets, inventory, equipment and infrastructure is useless without the people. Employees creates the living part of the company that moves material objects within the company toward expected business goal.

People employed within company needs to have certain qualification for specific position; physical and mental capabilities, education, training and experience. On top of this comes the most important asset of an individual that sets all other aspects into motion – Employee Motivation.

Employee Motivation is an element that extensively determines the final outcome of some activity. Without proper employee motivation all capabilities and experience of an individual are in vain. Motivation is like the fuel in the engine. You can have a perfect machine, but without the fuel you can go nowhere. Motivation is important aspect of business management. Motivating employees is not just task of Human Resources but it is a responsibility of all managers. There are a certain levers that can support employees moral at certain level.

Base Level of Workplace Motivation is crucially important, but at same time it is static, since once granted, it stays more or less the same:

  • Salary is basic factor of workplace motivation. It is important that policy of rewarding is balanced. Unbalanced salary policy per position within company is counter productive. Although it is prohibited to share information about the salary in public, employees are mostly aware of salary levels per position. Balance of the salary is not corresponding only to positions within the company, but also between similar position in competitive companies.
  • Benefits system that comes on top of the salary ( car, mobile, shares ) is also basic level of workplace motivation. It is true that these benefits motivate employees, but after some time these benefits are not source of motivation any more, since employee is becoming adopted to having them.
  • Permanent contract is the motivating factor for a new employee who is on probation period. His/her level of motivation is usually above average, since he/she is fighting for status of permanent employee.
  • Team Building Events are the means to awake the team spirit and morale of employees. Leisure, team dinners, anniversaries and similar events will shake regular working mind set and will reset relationship between people.
  • Vacations are the basic right of employee. Enabling the employee to use his right for holidays at their disposal. Rejecting employee request for holiday, due to different reasons, will have negative impact on motivation.

Advanced Level of Workplace Motivation is more dynamic motivator. It is constantly motivating employees for the next step, over and over again. Therefore, its impact is more effective.

  • Variable Salary scheme is payoff according the results compared to preset objectives. Since the result is directly influencing the employee he/she is more interested in target achievement. Of course, the targets should be stretching, but at same time achievable. If the target is overstretched, it will cause counter effect.

Employee Motivation
  • Promotion possibility is a very strong employee motivation. A person who have possibility to advance on a higher position through his career, will be charged and motivated by the fact that there is possibility to step on higher position. Very good way of motivating employee is direct communication that promotion exists and it might materialize in the future ( PDF process ).

  • Lateral Movement is an alternative to promotion. Lateral movement is shift of the employee to the position of the same grade, but within different function. Lateral movement is suitable for employees who are long time within a certain position, without possibility for further advance. Movement to the similar level position within other function can be refreshment and workplace motivation in the employee's career.

  • Development is the continuous process of increasing the skills and capabilities of an employee. Development is the employees motivation, since the fact that the company is investing in his/her development shows trust and expectation from the individual for successful achievement of results on current, as well as future positions.

  • Stress/Relax Balance needs to be done skillfully. Without pressure motivation and working atmosphere can slowly but definitely deteriorate. On the other side, too much pressure can create fear and exodus of personnel. Balance is the key word.

These are examples of basic and advanced motivators. There are other methods that can be added. These methods extends to reshuffling of the teams, geographical relocation, project assignments, etc. The science of modern management and Human Resources is inventing often a new methods of employee motivation. The objectives and targets of the companies in the market, that becomes more and more demanding, are becoming more and more stretching. Only the highly trained and motivated employee can give optimal contribution on this journey.

Continue reading here: Finance Basics: 3 Basic Financial Statement B

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Readers' Questions

  • sabrina
    What is the most important element of motivation for employees?
    7 months ago
  • The most important element of motivation for employees is defining clear, actionable goals and providing regular feedback. When employees have a clear understanding of what is expected of them and how their work contributes to the overall goals of the organization, it can greatly increase their motivation and engagement. Additionally, providing regular feedback, both positive reinforcement and constructive criticism, allows employees to understand how they are progressing and can help them identify areas for improvement. By creating a supportive feedback culture and setting clear goals, organizations can foster a motivated and engaged workforce.