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4.3b Motivating Employees

Non-financial Motivation

It’s not all about money! A well-paid employee can still be demotivated.

An employee who is happy, interested, and feels valued will often be highly motivated. Although the employee will not receive any extra pay, non-financial motivation may still have a cost to the business. The four main non-financial motivation factors are:

Non-financial motivations icon

Fringe Benefits

Also known as "perks", fringe benefits are extras given to staff. Examples may include free lunches, uniform, travel subsidies, free / discounted products, gym membership. Employees often see these as gifts – and who doesn’t love receiving gifts?

Training

Training staff can make them feel valued and supported, increasing their self-esteem and making them feel good. Trained staff can take-on other jobs which reduces the risk of boredom, and it might lead to promotion and a pay-rise. All this, and the business gets a workforce which can do their job with a higher level of skill and efficiency! Sounds like a win-win situation!

Job Enrichment

Giving workers greater responsibility or more complex and challenging tasks doesn't sound like a way to improve motivation, but it can actually work! Being trusted with additional responsibilities:

Styles of Management

How employees are treated by their boss can have a huge impact on staff motivation! Employees often feel more motivated if a manager listens to their opinions gives them some freedom to make decisions.

Democratic managers give workers some freedom to make and influence decisions.

Autocratic managers do not allow staff to make decisions

Maslow's Hierarchy of Needs

Abraham Maslow explained human needs as a hierarchy.

Click on a level for a description.

Maslow self-actualisation

1. Self-actualisation

When all other levels have been achieved, the employee will be working to their full potential. Satisfied by non-financial benefits.

  • Helping others
  • Morality and ethics
  • Creativity
  • Lack of prejudice
  • Problem-solving
Maslow self-esteem

2. Self-esteem

Feeling valued by yourself and others. Satisfied by non-financial benefits.

  • Confidence
  • Achievement
  • Respected by others
Maslow love and belonging

3. Love and Belonging

Happy in relationships and knowing they are part of something bigger. Satisfied by non-financial benefits.

  • Friendship and trust at work
Maslow safety

4. Safety

Security of resources and family which are mainly satisfied by pay and working conditions.

  • Feeling secure in their job
  • Having a safe workplace
  • Financial safety
Maslow physiological

5. Physiological

Basic human survival needs which are mainly satisfied by pay and working conditions.

  • Air
  • Food
  • Water
  • Clothing