Employee motivation What motivates an employee? By Kimmo Rantonen University of Jyväskylä 2012

What its all about ” Employee motivation is the level of energy, commitment, and creativity that a company's workers apply to their jobs.”[1] “Motivation is a driving force within an individual to do something well. Motivation is particular to an individual so it is important to find out what factors drive each person.”[2]

What its all about “Employee motivation can sometimes be particularly problematic for small businesses, where the owner often has spent so many years building a company that he/she finds it difficult to delegate meaningful responsibilities to others.”[1] “On the other hand, small businesses can also provide an ideal atmosphere for fostering employee motivation, because employees are able to see the results of their contributions in a more immediate way than in large firms.”[1]

Introduction This presentation aims to help managers to assess their own company from the point of view of employee motivation Some key factors in employee motivation will be presented and if a manager notices a particular key factor that might be wrong in ones own company they can look up the subject themselves for further information This presentation is a type of summary from other source materials (see list of references in the end for further reading)

Introduction Is money everything? – Compensation is the primary motivator [3] Real motivation comes from within There are extrinsic(money) and intrinsic(rewards from performing the work itself) rewards [5] For motivation both rewards are needed Contents for this presentation taken from other sources (see list of references in the end)

Monetary incentives [3] Even though money isn’t everything it is the primary motivator for motivation Wage and salary are two different things Wage = hours worked Salary = amount paid regardless of hours worked Important to distinct the two because – Legal problems – Employee dissatisfaction!

Monetary incentives [3] Wage/salary must be high enough to motivate and attract good employees! Wage must reflect the work performed – Wage in relation to other similar jobs in the area Is there a regular increase in pay? – Is it enough to match the increasing cost of living in the area?

Monetary incentives [3] Non monetary benefits(that save money) – Benefits not required by the law can be a great way to motivate good employees New methods for paying wages and salary are also something to consider – Paying for performance – Offering bonuses for coming up with ways to save in costs – Paying for knowledge instead of position

Employee autonomy [4] “Autonomy is the degree to which a job provides an employee with the discretion and independence to schedule their work and determine how it is to be done. Higher levels of autonomy on the job have been shown to increase job satisfaction, and in some cases, motivation to perform the job.”[4]

Employee autonomy [4] Too much autonomy can also be dissatisfying – employee autonomy should be determined individually Same applies to teams working in a firm When done properly, employee autonomy encourages individuals to use their own strengths to get the job done!

“Motivating job”[1] Motivating job by Turner and Lawrence 1. Worker feels personally responsible for a meaningful portion of the work accomplished 2. Job provides intrinsic rewards to the individual i.e. worker feels that the outcome of he’s/her work truly benefits organization and others 3. Constructive feedback/critique motivates for improvement

Intrinsic rewards Why these rewards matter? Money and other monetary compensations can only stop the employee from being dissatisfied [2] According to Herzberg real motivation comes from within[2] – Personal targets and self development Intrinsic rewards make workers more productive![2]

Methods for increasing motivation [1] Empowerment – More responsibility(autonomy) Creativity and innovation – Giving an opportunity to those who know the job best, to use their own ideas to improve the job without fear of manager disapproval and ridicule – Creating culture that promotes creativity and innovation

Methods for increasing motivation [1] Learning – Promoting ways to employee skill enhancement Quality of life – Flexibility in work hours etc. so that work life and other responsibilities are better aligned Other incentives – Small but repeating gestures, such as sincere praise on good job, can do much for small cost!

Managers role Managers and leaders are those who either make or break the motivation of employees “Research has shown that poor leadership may affect levels of employee motivation, reduce productivity or even impact on a business' reputation.” [7]

Morale [6] “From a managerial perspective, morale embodies the collective spirit and motivation of a group of employees”[6] Managers have the biggest influence on morale in a company Certain practices or techniques have been identified that boost morale and therefore motivation

Manager as morale booster [6] practicing of fairness and consistency bestowing praise in public while leveling criticism in private encouraging humor and fun in the workplace communication, communication, communication listening and remaining receptive to new ideas

Manager as morale booster [6] getting to know something about employees' personal lives and treating them as individuals creating opportunities for employees to learn and grow sharing decision making and offering employees choices promoting from within leading by example

Conclusions The purpose of this presentation has been to point out certain factors that improve motivation in a company Due to different restrictions these factors cannot be elaborated in detail so instead, the purpose is to promote inspiration in managers to look some of these things up for themselves if a certain problem, presented here, exists in ones own company

Conclusions Motivation is always personal! Motivation comes from within! The more you know your employees the better you can improve their motivation Money is important but it’s not enough!

List of references [1]: Employee Motivation - advantage, benefits, cost, What motivates?, Motivation methods, Eq/Employee-Motivation.html#ixzz1xCKjSocfhttp:// Eq/Employee-Motivation.html#ixzz1xCKjSocf [2]: Motivation in action An Enterprise Rent-A-Car case study, car/motivation-in-action/#ixzz1xCLJfEAE car/motivation-in-action/#ixzz1xCLJfEAEhttp://businesscasestudies.co.uk/enterprise-rent-a- car/motivation-in-action/#ixzz1xCLJfEAE car/motivation-in-action/#ixzz1xCLJfEAE [3] Employee Compensation - type, benefits, cost, Determining wages and salaries, Compensation laws, Eq/Employee-Compensation.html#ixzz1xCMTt7dBhttp:// Eq/Employee-Compensation.html#ixzz1xCMTt7dB

List of references [4]: Autonomy - organization, levels, manager, company, workplace, Employee autonomy, Managerial autonomy agement/A-Bud/Autonomy.html#ixzz1xCNBLLb1http:// agement/A-Bud/Autonomy.html#ixzz1xCNBLLb1 [5]: Employee Motivation – benefits, opedia/Eco-Ent/Employee- Motivation.html#ixzz1xCOu75Bhhttp:// opedia/Eco-Ent/Employee- Motivation.html#ixzz1xCOu75Bh [6]: Morale - manager, school, model, company, workplace, business, gement/Mar-No/Morale.html#ixzz1xCPECBSlhttp:// gement/Mar-No/Morale.html#ixzz1xCPECBSl

List of references [7]: The importance of effective management, A Chartered Management Institute case study, importance-of-effective- management/introduction.html#ixzz1xCQxxcg importance-of-effective- management/introduction.html#ixzz1xCQxxcg