Top 8 Factors that Affect Employee Motivation in 2022

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what are the factors affecting employee motivation

For any company to succeed, its employees need to be productive, dedicated, and creative. All of these are affected by their motivation. You may be thinking, what are the factors affecting employee motivation?

Employee motivation factors refer to any element that boosts the employees’ overall motivation to perform tier duties effectively. Each human being is different, so each employee requires motivation uniquely. Employee motivation can be mainly categorized into two options: extrinsic motivation and intrinsic motivation. Meanwhile, you can categorize motivation factors into two groups. They are motivating factors or satisfiers and demotivating factors or dissatisfiers.

Interested to learn what they mean and what the factors are? Let’s dive into the article to learn in-depth!

Types of Factors that Affect Employee Motivation

We can categorize factors that affect employee demotivation into two groups as well. These are:

  • Motivating factors or satisfiers 
  • Environmental factors or dissatisfiers. 

The environmental factor refers to the overall job or work environment and how it affects the employees. To create an overall motivating workplace for your employees, you must enhance motivation factors and discourage environmental factors.

Factors Affecting Employee Motivation

Now that we have learned about employee motivation and the types of motivating factors, let’s discuss some of the most important factors that affect motivation.

1. Recognition and Reward

Recognition and reward go hand in hand and are some of the best ways to motivate employees. You can praise your employees to let them know that you appreciate and recognize their contributions. If employees put in extra effort, just praise is not enough; you should reward them. When you provide positive feedback to your employees for their work and behavior, they are more likely to keep it up or repeat it. 

Recognition can range from a simple compliment to standing applause and more. If you want to reward your employees, you can provide them with a bonus, a day off, gift vouchers, buffet coupons, etc. 

2. Opportunities of Growth/Development

Employees feel motivated to work when they know there are opportunities to grow. Development and promotion are intrinsic motivations. When employees are provided with a room to grow a work ladder they can climb, they are more likely to be more motivated and dedicated. Knowing that they can achieve a promotion, an increment, better benefits, if they are productive and dedicated, motivates them. 

3. Financial Benefits

Financial benefits motivate most employees in one way or the other. Offering employees different opportunities to enjoy financial benefits boosts their work incentive and motivation. It also provides your employees with a sense of appreciation and accomplishment. Financial benefits can range from a simple bonus, raise/increment, to competitive benefit packages, promotions, and paid time off.

4. Non-monetary Benefits 

As mentioned, all employees do not respond to the same motivating factors. Even though most employees (and humans) prefer monetary benefits, some simply prefer non-monetary gains, gestures, and benefits. They’re more or less like rewards for employees. For example, when an employee has exhibited extraordinary effort and outcome, reward them with a paid vacation or staycation, a spa day, an event ticket, etc. Let them enjoy the moment and the benefits of their non-monetary gains.

5. Work-life Balance

Ensuring your employees have a proper work-life balance and somewhat flexible working schedule is a good motivator. If your employees are not overworked and have a proper work-life balance, they are less likely to leave or feel demotivated. Providing them with the flexibility of working hours makes them trust leadership. They are less likely to come up with excuses and are more likely to be motivated to ensure the work is finished correctly. Remember that an employee with a work-life balance is a happy, productive employee.

6. Work Environment 

As the name suggests, the work environment is the biggest ‘environmental factor’ of motivation. Employees need a supportive, friendly, empowering atmosphere to properly carry out their duties and responsibilities. If they face an adverse work environment and don’t feel welcomed or appreciated, they will quickly get demotivated. So, you must ensure a respectful, appreciative, supportive office environment. Team up your employees once in a while so they can get to know each other better

7. Relation with Colleagues 

Employees spend a big chunk of their day with their peers and colleagues at the office. They spend 2/3rd of each day at the office at least five days a week. How their colleagues behave with them impacts their mood and attitude vastly. If an employee feels ridiculed or dismissed by his colleagues and feels excluded, he will slowly lose motivation to participate. 

Make sure your employees are creating and obtaining a positive work environment. If possible, assign group projects and teamwork. This will undoubtedly help build team bonding among employees. Ensure that there is no unhealthy competition between employees.

8. Leadership and relation with leaders

Having a leader, the employees can look up to for inspiration and guidance is one of the best motivating factors for employees. As a leader, it is your duty to guide your employees as needed. Your leadership style also dictates a lot of motivating factors. It can encourage your employees and create new perspectives, objectives, and goals. However, it is essential to remember that each employee has a unique persona, and you need to mentor them accordingly. 

Why Employee Motivation is Important

Motivation refers to the act or process that guides behaviors and helps maintain them. Motivation in the workplace refers to the guidance that drives the employees to work efficiently and productively. It is no secret that the more motivated your employees are, the more dedicated they are towards their job or responsibilities, and the more productive they are.

When employees are motivated, they are more innovative and creative. Employees are also more engaged at work and with their colleagues; hence team bonding is easier. Not to mention, when employees are more motivated and engaged in their work, they are less likely to switch jobs, quit, or fail. Hence, a higher retention rate is obtained. 

We can categorize employee motivation into two groups: extrinsic and intrinsic. Intrinsic motivation refers to the employee’s self-driven motivation and desire to learn, explore, and excel. It refers to the enthusiasm and enjoyment they find in work without any outside stimulation. 

On the other hand, extrinsic motivation refers to behavior/performance to achieve the desired outcome. Both external and internal factors drive it, but primarily external factors. When we talk about the factors that motivate employees in an organization, we will primarily discuss these extrinsic motivations.

Frequently Asked Questions

1. What are the four reward systems of employee rewards?

There are four reward systems to raise employee morale. They are monetary rewards, non-monetary rewards, employee assistance rewards, and employee recognition rewards.

2. Can reward motivate employees?

Rewards can increase employees’ productivity and work enthusiasm. It also promotes healthy competition, builds team-bond and promotes healthy competition among employees.

3. Can motivating employees reduce the employee turnover rate?

Yes, motivating employees will result in more dedicated, engaged, productive employees. They will feel recognized and appreciated. Ultimately this can lower the employee turnover rate in your company. 

Bottom Line

A company or organization cannot succeed without productive and dedicated employees. Motivation drives the employees to work efficiently and productively. We hope this article answered your question, ‘what are the factors affecting employee motivation?’ Now, you can carefully work on these sectors to create a more respectful and motivational work environment for your employees. 

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