The importance of employee motivation to a business 1.4.4

Motivation - the will to work or ways in which businesses can encourage staff.

Motivation comes from enjoyment of work itself and/or from desire to achieve certain goals e.g. earn more money or achieve promotion.

An engaged employees is one that has emotional commitment to the organisation and its goals. This means that engaged employees actually care about their work and their company and are motivated to contribute to the company's success.

Motivated employees are generally thought to be more productive and better able to communicate and collaborate. Business managers try to meet employee's needs in a way that will enhance their performance and productivity, so maximising efficiency.

There are two broad approaches available to motivate employees

  • FINANCIAL METHODS (salary, bonus)
  • NON-FINANCIAL METHODS (passing on responsibility or praise)

BENEFITS OF MOTIVATED STAFF INCLUDE:
  1. Higher labour productivity
  2. Lower labour turnover
  3. Higher retention rates
  4. Lower unit costs
  5. Lower absenteeism
  6. Improved customer service
  7. Better workplace relations

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