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The human factor; Employee Motivation and Retention

Human resource is a precious asset that fuels innovation, drives progress, and shapes organizations. Therefore, the long-standing notion that ‘humans are the most valuable resource’ for an organization remains valid. Today businesses face  pandemics, economic crises, recessions, resignations, skyrocketing mental and health challenges and demands for flexible working hours. Organizations have to pay extra care to manage their employees.

In this context, employee motivation plays a vital role for an organization.

The word ‘motivation’ is defined as the process by which an individual’s efforts are energized, directed, and sustained towards achieving a goal. Motivation addresses an individual’s internal state if specific outcomes are deemed desirable. It is imperative that managers/management of an organization take into consideration ‘what do employees want?’ and ‘how can they be motivated?’ in order to address one of the most pressing issues, which is attracting and retaining employees for an organization.

Let’s examine how employees can be motivated in the workplace. In general, there are two ways to motivate employees: by giving ‘what’ and ‘how’. The following section will explore how employees can be motivated by giving them ‘what’ they need in the context of an organization, following Maslow’s hierarchy of needs theory. Maslow (1943) identified five fundamental needs of an individual: physiological, safety, social, esteem, and self-actualization. It is believed that every individual desires these needs fulfilled and they primarily strive to meet the lower-order needs (i.e., physiological, safety, social) before moving on to higher-order needs (i.e., esteem and self-actualization). Managers can use this as a foundation to find ways to motivate employees by tailoring specific programs and practices to satisfy either emerging or unmet needs.

Table 1.1: How Maslow’s Hierarchy of Needs Theory can be implemented in an organization context

NeedHow to address the need in the organization’s practice
PhysiologicalFair basic payBasic healthcare facilitiesSafe and secure working conditionsClean water and sanitationCafeterias
SecurityRetirement benefitsMedical benefitsInsurance schemeSolve employee’s problemsHeating and ventilationRest periods
AffiliationEncourage social interactionCreate team spirit; create work groupsCreate a platform to have healthy relationships with co-workers and peersAllow space to have social interaction with outside parties
EsteemDesigning challenges jobIncrease responsibilitiesPromotionAppreciating employeesProvide training and developmentEncourage participation in decision making
Self-actualizationEncourage creativity and innovationProvide challenges Provide growth and advancement opportunities

Source: Adapted from Champagne & McAfee (1989)

The aforementioned are ways to motivate employees in line with Maslow’s hierarchy of needs theory. To reap the benefits of such efforts, it is primarily the responsibility of managers to ensure a conducive organizational climate that unleashes the fullest potential of employees. Therefore, managers must also play a significant role in motivating employees. Hence, ‘elevating the role of the manager’ is another crucial task in creating the proper organizational climate. Unfortunately, many managers consider connecting with employees to be an additional burden and neglect it. Companies must emphasize to the Manager that it is not an extra task, but rather a fundamental responsibility.

In today’s rapidly evolving business landscape, organizations are constantly looking for new and innovative ways to motivate their employees. One such practice is pay-for-performance, which links an employee’s compensation to their job performance. This can be achieved through various means, including merit or piece-based pay systems, where an employee’s salary is determined by the quality or quantity of their work output. Additionally, gain-sharing and employee-share ownership plans can provide incentives for employees to work towards achieving the organization’s objectives, as they are rewarded with a share in the company’s profits.

Organizations can also use lump-sum bonuses, pay-for-knowledge, and lifestyle awards. Flexible work schedules, team-based compensation, and other non-traditional forms of compensation can also be effective motivators, as it offers employees a greater degree of autonomy and control over their work.

However, in order to implement these innovative practices effectively, organizations must first ensure that they have created a supportive and engaging work environment. Managers play a crucial role in this process, as they must be able to connect with employees and understand their needs and aspirations. By elevating the role of the manager and emphasizing the importance of employee engagement, organizations can create a culture of motivation and achievement that will benefit both the employees and the company as a whole. 

Challenges Faced by Managers in Motivating the Contemporary Workforce

One of the greater challenges in motivating employees is keeping them going at the economic shrink. This is a quite difficult time for both organizations and employees. So, managers need to be more careful in dealing with such situations. Often managers can use the following tactics to handle this situation. Communicate with employees from time to time and care about employees’ layoffs. Establishing a common goal and working towards this give employees opportunities to contribute to learning and growth.

Motivating a diverse workforce is another challenge. Managers must put extra care into it and thus need to be careful in considering the generation of employees, their age, gender, sexual orientation, religion, and ethnic group when making and implementing motivational programs etc. Otherwise, these efforts might be wasted. For example, Generation Y employees look to be independent and gain more experience and opportunities, while older workers look for structured work opportunities. If managers do not understand the diversity of the workforce, motivational programs will not be effective.

Motivating professionals is another massive challenge for managers today. Professionals are much more concerned with their development and expertise in their field than with financial benefits. Therefore, to motivate them, managers have to provide challenging tasks and always ensure that they are working on important assignments. Giving them the opportunity to learn, grow, and excel in their field, will ultimately lead to their motivation and success.

The last challenge is motivating contingent workers. Due to costs, downsizing, and other organizational restructuring issues, organizations recruit temporary workers. Motivating them can be hugely challenging. However, managers can take some steps to motivate them. These steps include opening contingent positions to individuals who prefer a temporary status and the freedom it provides, offering higher salaries to avoid the feeling that their services are not valued, and providing opportunities for them to become permanent members of the organization.

References

Kreitner, R., & Kinicki, A. (1998). Organizational Behavior (4 ed.). Boston: Irwin McGraw-Hill.

Maslow, A. H. (1943). A Theory of Human Motivation. Psychological Review, 50, 394-395.

Champagne, P., & McAfee, B. (1989). Motivating strategies for performance and productivity: A guide to human resource development. New York: Quorum Books.


Diriya Sri Lanka
Diriya Sri Lankahttps://www.diriya.lk
Diriya.lk is a sustainability and social innovation initiative of Dialog Axiata PLC. The content available herein is aimed solely for the purposes of educating, guiding and assisting Micro, Small and Medium Enterprises (MSMEs) in navigating the challenges of the fast paced business world. As such, Dialog Axiata PLC, its staff, its officers or Directors shall not be liable for any direct, indirect, incidental, special, consequential, or punitive damages or damages for any loss of profits, revenue, business, savings or data, incurred due to the use of the content available on Diriya.lk.

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