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:
- Fringe benefits
- Training
- Job enrichment
- Styles of management
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:
- improves self-esteem
- Shows the employer values the employee
- Reduces risk of becoming bored
- Greater sense of fulfilment and self-esteem
- Presents new opportunities for advancement
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.
- Basic needs (food, shelter, clothing) are on the bottom level of a pyramid
- When a level of needs is met, humans move up to the next level
- For an employee to reach their full potential, the needs of all levels must be met
Click on a level for a description.
4.3a Motivating Employees
4.4 Training
