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Employee Motivation: Meaning, Factors, Importance and Benefits

Employee motivation is the extent of dedication, enthusiasm and ambition that one possesses while working in an enterprise. The top benefits of employee motivation include better productivity, low employee turnover rate, cultivation of positive workplace culture, and more. 

Whether the economy is expanding or contracting, the quest to motivate employees remains an ever-lasting concern for many business firms. Better employee motivation correlates with better engagement and productivity. 
 

As a result, it comes as no surprise that employee motivation has emerged as a top priority for most businesses. Companies are now investing more effort in addressing the question: how to increase employee motivation?
 

This complete guide will help you understand what is employee motivation, its types, importance, benefits and a few ways to motivate employees and increase productivity.

Employee Motivation Meaning

Employee motivation can be defined as the extent of dedication, enthusiasm and ambition that one possesses while working in an enterprise. Motivated employees show greater dedication, and longevity, and contribute to better project outcomes. 
 

Experts have underscored the strong connection between employee motivation and engagement, with the latter invariably leading to increased productivity.

Importance of Employee Motivation

Employee motivation gains a lot of attention for various reasons. First, it helps management seamlessly achieve the company's goals. In the absence of a motivated workforce, a firm may find itself in a problematic position.
 

Consider an employee with relatively low motivation. Such an employee is likely to do their work at a reduced pace, avoid projects, or spend excessive time on personal devices. Most evidently, their work lacks focus and energy.
 

This not only results in a wastage of resources but also has the potential to negatively impact other employees which impedes the entire organisation from delivering work at its peak quality or achieving critical targets. 
 

Whereas, motivated employees can be a testament to better productivity and empower the company to get higher levels of output.

Common Factors Affecting Employee Morale and Motivation 

Employee motivation is influenced by a variety of factors, and these factors can differ among employees. Each individual may require unique incentives to stay motivated.
 

There is no universal solution for motivating employees, and leaders must first understand the specific needs of their team members before determining the most effective motivation strategies.
 

While numerous factors can impact motivation, the following factors typically exert the greatest influence on employee motivation:
 

  • Monetary compensation/financial rewards

  • Leadership

  • Organisational culture

  • Scope for career advancement

  • Professional learning opportunities

  • Recognition and appreciation

  • Work environment

  • Flexibility in job roles

  • A sense of belonging within the organisation

  • Achieving work-life balance

  • Engaging in meaningful and purposeful tasks

Top Benefits of Employee Motivation

  1. Enhanced Employee Productivity

    Heightened productivity stands out as a significant benefit of highly engaged employees. Motivated employees are more inclined to exert their utmost effort in completing their tasks. 
     

    As a result, they leverage their knowledge and skills to elevate their performance and boost their overall output.

  2. Better Use of Resources

    Motivated employees tend to take greater ownership of the organisation's resources and employ them more effectively. They exhibit a propensity to minimise wastage and willingly share resources with their own teams and others. 
     

    This contributes to a reduction in overall operational costs, particularly beneficial for businesses operating with limited resources.

  3. Continuous Self-Development

    Motivated individuals constantly strive to improve their knowledge and skills. They are willing to put in the effort to expand their scope of learning and performance. They actively strive to attain higher levels of success, benefitting both themselves and the organisation.

  4. Diminished Employee Turnover

    Motivation leads to improved performance and efficiency, resulting in greater job satisfaction among employees. This sense of contentment diminishes their inclination to seek alternative employment. 
     

    Motivated employees develop a stronger sense of belonging and are less likely to leave a conducive workplace.

  5. Cultivation of a Positive Workplace Culture

    Motivated individuals, content with their work environment, readily engage with their peers and supervisors in a collaborative manner. They willingly contribute to joint tasks, acknowledge their colleagues' efforts, and readily provide support in tackling challenging objectives.
     

    This mutual trust and support foster a positive workplace culture.

  6. Improved Employee Conduct

    Motivation flourishes when employees feel their ideas are valued and their voices are heard within the organisation. This serves to mitigate any discontent they may harbour towards the company or their colleagues. 
     

    Consequently, they exhibit a more positive and supportive attitude, contributing to their own personal and professional development.

  7. Willingness to Embrace Change

    Motivated employees exhibit greater receptivity to organisational changes that align with the company's growth trajectory. They maintain confidence in their abilities, approach change with a constructive perspective, and remain diligent even in challenging circumstances.

What are the Different Types of Employee Motivation?

Employees can be motivated by two main types: intrinsic and extrinsic motivation. 
 

For instance, an employee might be driven to meet a project deadline because they anticipate a bonus (extrinsic motivation), or they might work diligently simply because they have a passion for their work and the satisfaction of achieving a goal (intrinsic motivation).
 

  • Intrinsic Motivation

    Intrinsic motivation is when you are compelled to complete a task because you personally find it fulfilling. If you are inherently motivated to finish a task, it is likely because you genuinely enjoy the process and willingly complete it. Intrinsic motivation has several distinct forms, including:
     

    1. Competence and Learning Motivation

      Competence motivation, also referred to as learning motivation, is linked to an individual's desire to feel capable and proficient. For example, in a work setting, you might be motivated to learn a new software program not solely for rewards but also to master a new skill.

    2. Attitude Motivation

      Attitude motivation motivates individuals to alter their own or others' thoughts and emotions. People driven by attitude motivation aim to enhance their interpersonal interactions by fostering better social engagements. Their focus is on improving the well-being of those around them.

    3. Creative Motivation

      Some individuals consider dedicating time each day to express their creativity as essential for staying motivated in various aspects of life, including work. When you are motivated by the desire to express yourself creatively, you are tapping into creative motivation.
       

  • Extrinsic Motivation

    Extrinsic motivation involves either the promise of a reward or other external factors. Extrinsic rewards often include financial compensation, recognition, or other forms of remuneration.
     

    Many employees in the workplace are extrinsically motivated, drawing motivation from both their paychecks and opportunities for career advancement. Extrinsic motivation includes several common subtypes, such as:
     

    1. Achievement Motivation

      Achievement motivation is rooted in the satisfaction derived from reaching specific goals. Those motivated by achievement are not content with completing a project unless it results in some form of recognition. 
       

      Achievement motivation is considered extrinsic since it relies on external factors to provide a sense of accomplishment.

    2. Affiliation Motivation

      Affiliation motivation involves the desire to belong to a particular group or organisation. Individuals motivated by affiliation thrive when collaborating with or interacting with a team of fellow employees. 
       

      They find it gratifying when they can contribute to group efforts and are recognised as valuable members of their respective teams.

7 Ways to Motivate Employees 

  1. Solicit and act upon employee input: One effective approach to enhance employee motivation is to simply seek feedback from employees regarding how to enhance the meaningfulness of their work. 
     

    Pay heed to your staff and use their input to adapt their roles and strategies in a way that leverages what motivates them. 

  2. Foster positive manager-employee relationships: Unsurprisingly, a significant factor influencing engagement and motivation is an employee's relationship with their manager. 
     

    Consistent communication and the perception that managers are genuinely interested in their well-being are associated with increased employee engagement. 
     

    Encourage managers to conduct regular one-on-one meetings to establish favourable connections with their team members and gain insights into their sources of motivation.

  3. Establish transparent employee expectations: Ambiguity can lead to heightened frustration among employees, ultimately dampening their motivation over time. Instead, establish and openly discuss clear employee expectations to eliminate such frustrations and enhance motivation.

  4. Prioritise strengths over weaknesses: Concentrate on recognising and using each employee's strengths rather than fixating on their weaknesses to discover suitable roles within the organisation. This approach facilitates employee growth and development within their positions, motivating them to produce higher-quality work.

  5. Acknowledge your employees: Acknowledgement can serve as a potent motivator for employees. Consider instituting a formal employee recognition program and fostering a culture that spontaneously celebrates employee achievements as they occur in real time.

  6. Cultivate a Positive Workplace Environment: Healthy workplace cultures and environments are those where individuals feel comfortable expressing themselves, perceive their worth, trust their leaders, and enjoy positive relationships with their colleagues. How conducive is your workplace to such dynamics?

  7. Select Appropriate Leadership for Your Organisation: Appointing the right leaders for your employees is crucial for motivating them. Effective leaders possess the ability to inspire and engage their team members optimally.

Final Words

Every organisation aims to attain significant milestones, and its workforce plays a pivotal role in accomplishing these targets. 
 

Human resources departments craft comprehensive benefits packages to serve as incentives that motivate employees to exert their best efforts. In the contemporary business landscape, there exists a diverse array of employee benefits that forward-thinking companies should extend to their staff. 
 

These encompass health insurance plans, life insurance policies, family and medical leave (FMLA), retirement savings plans, disability insurance, paid time off (PTO), and even stock options. 
 

These benefits hold substantial value for numerous employees and can significantly contribute to their overall well-being and contentment.

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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Frequently Asked Questions

What improves employee motivation?

Several factors positively affect employee morale and motivation, including monetary compensation/financial rewards, leadership, organisational culture, scope for career advancement, professional learning opportunities, recognition and appreciation, etc.

What are the main types of employee motivation?

The main types of employee motivation are intrinsic and extrinsic motivations. Intrinsic motivation, which originates from within an employee, contrasts with extrinsic motivation, driven by external factors, prompting employees to take action.

How does employee motivation affect employees?

Employees who are motivated typically display commitment and job satisfaction, resulting in elevated job performance and, consequently, enhanced organisational effectiveness.

Who is responsible for motivating employees?

It is the managers who exert the most amount of impact on an employee's motivation. Managers provide support and demonstrate concern for their team members, employing various strategies to inspire their staff and enhance their leadership skills.

Disclaimers

  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.