Employee Motivation: The 5 Factors That Drive Performance
Employee motivation is a mystery to many managers. But, it doesn’t have to be. Instead, understanding how motivation affects employee performance and understanding how to use motivation to improve performance can be boiled down to five master keys. Organizations that want to improve employee motivation need a system that consistently rewards employee achievement. It always amazes me how few organizations have such a system.
However, not all employees respond to the same motivations. Each person has their own likes and dislikes, passions, interests and desires. The role of the successful manager is to learn to identify what motivates each employee and to learn how to harness those motivations to simultaneously accomplish the goals of the organization as well as the goals of each employee.
The five key employee motivation factors include: satisfaction, appreciation, recognition, inspiration, and compensation.
1. Motivation of employees by creating satisfaction
In their book “The Service Profit Chain,” James Heskett, W. Earl Sasser, and Leonard Schlesinger make a compelling case that regardless of your business, the only way to generate sustained profit is to create a work environment that is engaging, focused, and keep talented employees. In other words, they must be motivated to show up, commit, and perform at a level of excellence.
Employee motivation when it comes to employee satisfaction is vitally important. And it goes well beyond a “happier workforce.” Because?
Because there is an undeniable link between satisfied and motivated employees and satisfied customers. In other words, focus on creating satisfied employees, focus on motivating employees, and those motivated and satisfied employees will take care of your customers.
2. Motivation of employees through genuine appreciation
Sometimes managers unknowingly sabotage employee motivation by failing to recognize their employees’ positive behaviors and achievements. As a result, employees don’t know if they are doing a good job or not.
Recently, an employee of one organization told me, “The only time we hear from management is when we do something wrong!”
Fortunately, savvy managers can improve employee motivation by rewarding them with personalized attention. This can include a pat on the back, a handwritten note, or a quick comment in the hallway.
When you show appreciation, be specific. Instead of simply saying, “We’re really grateful for the good work you’re doing here,” the focus could be, “I really appreciate how you handled the Franklin Industries account last week when we had to get your rush order out on Friday afternoon.” . Your effort really made a difference.”
By being specific, the employer seems much more sincere and the employees realize that their actions are really being watched. And, a high level of employee motivation is the natural result.
3. Motivation of employees through recognition
Many people will do for recognition what they won’t do for money. And this is the manager’s secret weapon for employee motivation. Some people are motivated by the opportunity to put their name on the wall, receive a trophy at an annual banquet, or see their name in the company newsletter. He gives them an “emotional reward” for their actions.
Look for ways to increase employee motivation by recognizing excellence in the workplace. Ring a bell each time an individual or team reaches the production target. Put up posters with photos of team members who have had the most accident-free days. Give prizes for attendance records. Just do something. It is so inexpensive, yet highly effective in your efforts to motivate employees.
4. Motivation of employees through inspiration
Inspiration comes from leadership. This form of employee motivation includes the company’s mission, purpose, and goals. People want to be part of an organization that goes somewhere, stands for something, and provides meaningful service to the marketplace.
If you want to lead an inspired and mission-driven organization, follow these steps and watch employee motivation improve dramatically.
Have a clear mission, in other words, know where you are going.
Be enthusiastic and passionate about your mission. After all, if you don’t get excited, neither do they.
Being able to communicate the mission, its value to the market. In other words, why is it worth it?
Make sure everyone in the organization understands and can communicate the mission.
Make sure employees understand how they fit into the process of accomplishing the organization’s mission.
Make the connection between the mission and the individual values and goals of your employees.
Keep your mission in front of everyone in the organization.
5. Employee motivation through compensation
Some employees are motivated by money. In fact, most are motivated by money; at least for your basic needs. Employee motivation through compensation can come in the form of raises, performance bonuses, commissions, profit sharing, or any number of “perks” like cars, vacations, or other tangible items purchased and used as rewards.
I noticed an interesting program at a hotel where I recently stayed. They have a sophisticated system to reward employees based on customer feedback. Customer feedback forms and drop boxes have been posted throughout the hotel. When guests comment on a hotel employee’s performance, the employee accumulates points that can be used to purchase rewards such as travel, gifts and other incentives.
Take action on employee motivation
Whichever method is chosen, it is important to have a system that develops employee motivation. Not all people are motivated by the same factor or combination of factors. Offering all five: satisfaction, appreciation, recognition, inspiration and compensation ensures that the organization has something to contribute to the motivation of each employee.