This is one of the worst scenarios for employers, and yet it is not far from reality: Not only does the Gallup Engagement Index 2018 confirm it, many other studies have reached similar conclusions. This lack of connection stems, among other things, from low employee motivation. Employees are simply dissatisfied and do not enjoy their work – that is anything but fulfilling.
In this article, we explore the business relevance and background of employee motivation and show the options you have as an employer to motivate your workforce. But: There are several things to keep in mind to make sure your efforts pay off.
Employee Motivation – What Is It, Exactly?
The Gabler Wirtschaftslexikon defines the term employee motivation as follows:
"The influence exerted by a manager or the company on employees in order to get them to maintain, further develop, or (fundamentally) change their own performance behavior and/or performance results."
For employers and managers, employee motivation is therefore about using incentives to motivate staff so that their behavior and/or performance improves for the benefit of the organization.
To achieve this, external incentives can be offered (extrinsic motivation) in the form of rewards or penalties. If a task is completed particularly well, it may lead to a promotion (reward). The threat of a penalty, such as a formal warning, can also be used as an incentive.
On the other hand, there are internal incentives (intrinsic motivation). Here, employees’ motivation comes from within, resulting in noticeable dedication. An action is carried out for its own sake. The most obvious reason for this is enjoying one’s work. But it is also conceivable that the work is perceived as a challenge or as particularly meaningful.
Benefits of Motivated Employees
Human Factors
If employees are motivated, it ultimately means they enjoy doing their work. This in turn has many positive effects on their performance and work results, as well as on the company’s success. Motivated employees
- work more conscientiously and show greater commitment. This shows, for example, in employees thinking independently and (proactively) looking beyond their own scope. As a result, they also make fewer mistakes and have fewer workplace accidents, since they are generally more attentive.
- want to take on more responsibility and have a positive influence on their colleagues.
- can work more creatively, so that new ideas and even innovations emerge. This in turn can lead to new products/services or more efficient processes.
- voluntarily acquire new knowledge to be even more successful in their jobs.
- are more loyal to the company.
In addition, motivated employees and a motivated workforce can improve the overall working climate in the office.
Economic Factors
From a business perspective, motivating your employees is equally important. Motivated employees
- are (due to illness) absent less often,
- are less likely to want to change employers (turnover), and
- are more productive, for example by working more efficiently and faster, which leads to better results.
Motivated employees therefore generate lower costs.
In this context, one thing must always be kept in mind: All activities and successes in a company are based on the efforts of its employees. They are the drivers of every organization, without whom no progress or growth would be possible. So it stands to reason that a motivated workforce achieves better results, which in turn benefits the company as a whole.
The Right Motivation Is Key
Employee motivation must be addressed from the top (top-down). Through their behavior, employers have a major influence on whether their employees are motivated. The problem is that many managers are not yet aware of how relevant this topic is and often take no action to correct existing shortcomings. Rigid corporate structures and outdated value systems are frequently to blame. Many managers also do not know the real needs of their employees and therefore cannot meet them.
To transform such behaviors and mindsets, companies can, for example, conduct coaching sessions. This can encourage management to rethink and raise awareness of these issues. Managers then understand the human needs of their employees (e.g., the desire for appreciation, recognition, trust, etc.) and can meet them with the right incentives. This motivates employees in the long term and creates the desired emotional bond between employees and the company.
Measures – 3 Levels
In general, managers can provide incentives for employee motivation on three levels:
- The material environment describes working conditions. This includes workplace design, office equipment, working hours, and salary level.
- The psychological environment refers to managers’ leadership style, interaction and collaboration with colleagues, and behavior within teams.
- The personal environment relates primarily to work-life balance, i.e., reconciling professional and private life (e.g., flexible working-time models)
Every employee is motivated differently and responds to different incentives. Younger employees usually place more importance on professional development opportunities, while older employees value job security more. What applies to everyone, however, is that they must be addressed and reached through a combination of measures (across the three levels) in order to be motivated. As an employer, it is crucial to know your employees and understand what matters to each individual.
Measures – 6 Examples
Variable Bonus Payments
For salary to be seen as a source of motivation, it has to be above average. Still, more money does create an incentive, even if it is only temporary. Variable bonuses paid on top of a fixed salary are a different story. Employees can influence or trigger these payouts through particularly strong personal performance. However, the variable portion should not be too large, as employees would otherwise feel under pressure, and the motivational effect would be lost.
It is also worth noting that employers who choose this approach have to invest (more) money.
Different Leadership Styles and Leading by Example
Especially to retain and motivate young talent, managers should move away from a linear, directive, and above all authoritarian leadership style, as this type of leadership leaves little room for personal growth and individual ideas.
Leadership style should be flexible depending on the situation, and there should be a willingness to engage in dialogue. Other situations call for a more assertive style. This way, managers avoid coming across as consistently authoritarian, which can have a negative impact on motivation.
Managers should also serve as role models. Clearly communicating and living the desired values is crucial here. If the boss is punctual, well prepared, treats colleagues with respect, and occasionally works overtime as well, they fulfill this role-model function. This in turn has a positive effect on workforce motivation.
Giving Praise
Giving praise – ideally in front of the entire workforce/department/team – provides a huge motivational boost for the person being praised. It expresses appreciation for the (good) work done and satisfies deep-seated needs. At the same time, it gives employees new energy and motivates them to keep delivering good work in the future.
A side effect of praising someone in front of the whole team: Listeners are also spurred on to achieve better results, since they want to be praised next time, too. Of course, appreciation can also be expressed spontaneously, e.g., by phone or with a note on the desk. What matters is that it is genuine and given whenever particularly strong performance has been delivered.
Constant praise without a real reason, on the other hand, should be avoided, as at some point it will no longer be taken seriously. This technique should therefore be used selectively.
Regular Check-Ins
Holding regular employee reviews (at least twice every six months) can also have a motivating effect. Make sure these conversations are individually prepared and conducted. After all, every employee has different strengths and weaknesses, projects, and tasks that should be addressed in these conversations. Any accumulated problems, wishes, uncertainties, and the like can also be clarified. Together, both sides should find a solution they are satisfied with.
This kind of constructive feedback and the recognition it expresses relate to the employee’s overall conduct and therefore go beyond selective praise. At the same time, it signals to employees that their concerns are being heard, which is also motivating.
More Freedom in Decision-Making
Giving employees more leeway in decision-making can also have a very positive effect. It shows them that their skills and expertise are recognized and that they are trusted to make certain decisions independently based on these qualities. At the same time, it boosts employees’ self-esteem, which motivates them even further.
Flexible Working Hours
Flexible working hours are becoming increasingly important for many employees. By leaving this arrangement up to employees, the company makes a significant contribution to helping them balance work and family. This in turn motivates employees on the level of their personal environment. Flextime and working from home are the most common examples.
Other Incentives
In addition to the techniques mentioned above, employers can implement many other things. Traditionally, motivation can be increased through:
- Fruit and vegetables as well as coffee and water at the workplace.
- (Sports) activities after work, e.g., fitness, soccer, running, company outings, bowling, hiking, etc. Discounts on gym/sports club memberships or health courses are also part of this.
- Employee development and professional training opportunities.
Used in isolation, however, these measures do not have a lasting effect, let alone a particularly strong one. Many employees already take them for granted. Several additional measures should therefore always be implemented.
Conclusion
Employee motivation should be a top priority for managers, because everything a company achieves goes back to the work of its workforce. A motivated workforce delivers better results while generating lower costs – both of which benefit the organization. In addition, motivated employees feel a stronger emotional connection to the company, which is a must in the competition for qualified talent. Many managers have not yet recognized the relevance of this topic, so there is insufficient awareness of existing shortcomings and the need to act. A shift in thinking is needed, because only then can companies implement top-down measures to drive employee motivation.
To retain and motivate employees in the long term, companies need to offer more than just an attractive salary – the range of measures is far broader, and motivation often succeeds without spending a single cent.