4a. Motivation - The Importance of Employee Motivation

What is motivation?

The inner desire or willingness that propels a person to take action and achieve a specific goal or outcome

What are the 2 types of motivation?

• Intrinsic - coming from withing a person (values, beliefs etc.)

• Extrinsic - coming from external factors (rewards or punishments)

Why is motivation important in a business?

It plays a critical role in a business's success by:

• Improving productivity

• Enhancing reliability

• Increasing loyalty

• Reducing labour turnover

What is the impact of motivation on productivity?

• Motivated employees are more productive and efficient as they are more likely to be engaged in their work and take initiative in order to meet or exceed their goals

• They will generate higher levels of output and quality

• Increased productivity results in higher profits for the business

What is the impact of motivation on the reliability of workers?

• Motivated employees are more likely to be reliable and dependable

• They take pride in their job, show up on time, meet deadlines, and take fewer sick days

• This leads to increased trust between the business and its employees and higher productivity

What is the impact of motivation on turnover rates?

• Motivated employees are more likely to stay with the company long-term which reduces the turnover rate

• Lower turnover rates reduce the need for costly recruitment and training