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7 Business Benefits of a Highly Motivated Workforce

The motivation levels of employees play a critical role in their efficiency and performance at the workplace. Hence, building a highly motivated workforce is critical for most organizations. Hence, organizations first need to understand the concept of employee motivation and its benefits.

What is ‘Employee Motivation’ and Why is it Important?

Employee Motivation‘ can be defined in the simplest terms as the eagerness or commitment of an employee to perform a task.


Hence, organizations need to ensure that their employees find their work enjoyable and are satisfied with the overall work environment.

Both these factors contribute greatly towards keeping the employees motivated and engaged, which in turn enhances their performance and efficiency.

A survey conducted by Gallup has shown that organizations that see a rise in 20% in engagement, experience a 41% reduction in absenteeism and a 59% decline in employee turnover rates. Engaged employees are more likely to avoid missing work and develop a deep sense of passion, purpose, presence, and energy towards their job.

What are the Benefits of a Motivated Workforce?

well-motivated workforce can prove to be the greatest asset for the organization.

It tends to be more productive, has a lower turnover rate, and is more committed to organizational growth.

Therefore, motivated employees have a sense of being an integral part of the organization they work for, which, in turn, helps in creating a positive work environment.

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The following are the key advantages that organizations can enjoy by having a motivated workforce:

Benefits of having a Highly Motivated Workforce

1. Better Performance


Importantly, highly motivated employees have significantly higher performance and efficiency levels.

Employees feel naturally inclined to put in their best efforts toward the completion of the tasks assigned to them when they are motivated.

Therefore, motivation helps transform the knowledge and skills of employees into enhanced performance and greater business impact.

2. Higher Productivity

Committed Employees

Moreover, motivated employees show a deeper sense of ownership for the organization’s resources and hence tend to utilize them more efficiently. 

Therefore, they work towards minimizing wastage and show a willingness to share resources with their co-workers from the same or even different teams.

Hence, this helps in reducing the overall operational costs, which can prove beneficial, especially for organizations with limited resources.

3. Continuous Learning

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Additionally, employees tend to push themselves toward achieving their professional objectives when they are motivated.

This helps in facilitating their self-development as they show eagerness to attain new skills and develop behaviors that can stimulate their growth.

Hence, they work towards constantly improving themselves as they try to attain even greater levels of success for themselves as well as their organization.

4. Lower Employee Turnover

Benefits of having a Highly Motivated Workforce

Since higher motivation results in better performance and efficiency of the employees. It makes them feel more satisfied with their current organization.

This sense of satisfaction minimizes their desire to seek job opportunities elsewhere.

So, motivated employees develop a deeper sense of loyalty and belonging, and are less willing to leave this secure environment.

5. Positive Work Culture

An essential guide to building a great organizational culture

As motivated employees tend to be happier and more satisfied with their work environment, it makes it easier for them to work with their peers and seniors more collaboratively.

Whether it is about offering peer-to-peer recognition to a co-worker or providing help and support to overcome a workplace challenge, motivated employees are always willing to make a positive contribution to the organization.

Hence, this helps in creating a positive work culture based on mutual trust and support.

6. Greater Innovation

Recognize Innovation Efforts and Remove Fear of Failure

Additionally, motivated employees are always eager to explore, learn, and challenge the status quo.

This helps them in coming up with new business ideas, process improvements, and more cost-effective ways to work.

They are more likely to take the initiative of finding new things and new ways to do existing things.

This helps in creating an environment of innovation that can fuel business growth for the organization.

7. Easier Change Management

Employee Recognition Can Drive Innovation By Creating the Right Culture

Employees feel less anxious about any organizational changes that might be a part of a strategy when they are motivated.

Hence, they feel assured that they are doing a good job.

They are better prepared to embrace any change with a positive mindset and will put in their best efforts.

Read Why Investing in Employee Engagement Makes Sense?


The importance of having a highly motivated workforce cannot be overlooked by organizations seeking consistent growth and success in today’s highly competitive business environment.

Hence, it is not surprising that most organizations today strive to keep their employees highly motivated and engaged.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of experience in the corporate world and entrepreneurship. In the past, Sagar has worked with companies such as Genpact, Infosys, and ICICI Bank, in leadership roles. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.