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What Should Organizations Do for Employee Motivation?

“It is not the belief but the ability to make others believe in you is what drives the outcomes”. These famous lines by Henry Ford have become the crux of every successful organization. Employee motivation is a very important factor in achieving business goals.

What is Employee Motivation?


A motivated team will always work hard towards achieving a particular goal if there are challenges. Therefore, leaders need to repose their faith in their teams and keep them motivated for higher performance.

During the inception of Infosys, no one ever thought that it would be one of the largest tech companies in India and the world. Employee motivation and the faith of the leadership in the employees played a key role in the success of the firm.

These small steps eventually became a giant leap for the organization. The hard work of the employees paid off in taking the firm to the heights of success.

A highly motivated workforce ensures high levels of engagement, overall happiness, and satisfaction.

According to a survey conducted by Talent Works International, happier employees tend to be 31% more productive.

Higher employee engagement also helped companies to experience a 233% increase in customer loyalty and a 26% increase in annual revenue, according to the results of research conducted by the Aberdeen Group.

What Factors Affect Employee Motivation?

Several factors affect employee motivation. We will discuss a few of them below:

1. Fair Compensation

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Most people think that salaries are the only connection between the organization and the employee.

However, that line of thinking is flawed. It is not the quantum of salary that matters more but the fairness concerning the role and performance.

Employees usually demand fair compensation but organizations typically try to hire at salaries lower than market levels. But, this pressure on compensation often harms the organization more in the long run.

An employee who perceives that he or she is compensated fairly is generally more motivated at work and performs better.

Hence fair monetary benefits are critical for the motivation of the employees.

2. Career Opportunities

Employees tend to be motivated more by career opportunities than just compensation, especially after a few years in their careers.

These opportunities could be in the form of promotions, role enhancements, job rotations, special assignments, onsite assignments, and even relocation.

Employees are often willing to sacrifice short-term monetary benefits outside the organization for bigger career opportunities within the organization.

Hence, it is a great way to motivate and retain top talent within the organization.

3. Employee Recognition

Fun Awards

Employee recognition is a token of appreciation for the efforts, performance, and contribution of employees toward the organization.

It is an acknowledgment from the organization to make employee feels valued for their contribution. It makes them feel that the organization cares about their hard work.

The recognition not only makes the recipient feel important but also motivates others to work towards it. The social status associated with these awards makes the employees feel special.

4. Learning and Development Opportunities

Learning and Development can Promote Employee Engagement

When employees give the organization a significant chunk of their waking hours, it should also look after their needs and aspirations. The monetary benefits such as salary or incentives are helpful in the short run.

However, in the long run, employees look for personal development opportunities such as training programs, seminars, workshops, etc.

These events also break the mundane cycle of work and help the employee to hone his or her skills.

Adobe has a ‘pursue your hobby’ plan to encourage employees to take up short workshops to pursue their interests.

Hence, it creates a positive impact on the psyche of employees and makes them more motivated at work.

5. Great Work Culture

Employer Branding

The work culture in any organization is the most important aspect of keeping your employees motivated.

Hence, the management needs to create a positive work culture where employees can work with little stress. 

In a flexible corporate culture, employees are allowed to dress casually in comfortable clothing.

Replacing archaic office furniture with modern, bright, and cheerful workspaces can help in creating a more pleasant work environment. When an employee enjoys the work environment in which he or she works, productivity increases.

These concepts are utilized by the likes of Amazon, Flipkart, British Telecommunication, etc. to design their offices.

Apart from physical workspace, an open, vibrant, and dynamic work culture can motivate employees to work harder and perform better.

Openness, empowerment, and collaboration should be key elements of the work culture to motivate employees. Leaders play a critical role in building the work culture by setting their examples.

6. Employee Welfare Programs

Employee Benefits

When a person works in the organization, he or she is part of a larger family.

Team outings, family days, and annual meets make the employees feel more inclusive.

Other benefits such as family insurance, medical plans, and wellness programs are also important.


These measures can help in employee motivation so that they stay with the organization for longer and work harder to achieve the goals. This ultimately helps the organization achieve greater success.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of corporate and entrepreneurship experience. 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.