Impact of Employee Motivation on Organizational Performance

February 26, 2022

how does employee motivation impact organizational performance

An organization’s progress is directly related to the motivated employees working in it. In this post, we’ll discuss how employee motivation impacts organizational performance and the organization’s overall progress.

Motivated employees direct their efforts towards achieving organizational goals and positive returns. They get satisfaction from reaching their goals and finding value in their job. Let’s discuss these factors in detail.

Impact of Employee Motivation in Organizational Performance

Motivated Employees are More Productive

Motivated employees are loyal to their organization and find value and social status in their work. Thus, they are driven to discover their best selves for the organization.

Whenever employees are giving their best in the workplace, the whole workflow becomes more efficient. Thus, organizations’ capacity to produce high-quality work increases. With time employees can take on more responsibilities without compromising the quality of their work.

As a result, the organization can increase both quality and productivity effectively with the help of their motivated workers. With this result, companies can give their employees appropriate recognition and incentives while acquiring fresh talents to increase overall productivity significantly.

Motivated Employees Bring More Profits

Each organization needs to make a sustainable profit margin to keep itself afloat. This profit depends on the quantity and quality of a company’s work.

Organizations can take several initiatives to keep their employees motivated. With motivated employees, organizations can increase the quality and quantity of the work they produce. Therefore, the profit margin can be increased accordingly.

An increase in profit allows organization leaders to give better salaries, incentives, rewards, and benefits to make employees’ lives easier. Thus, employees stay loyal and engaged with the organization and keep evolving with it. 

Employee Motivation Reduces Employee Turnover

Employee turnover costs organizations a reasonable sum of budget. Each organization allocates substantial time and resources to train employees to develop skills and maintain wellbeing. So, when employee turnover occurs, all this time and resources become unavailable for the organization. This is why motivation is important in an organization.

Organizations that keep their employees motivated can reduce turnover significantly. By taking the right motivation approach, organizations can bring out the best in their employees and keep them engaged with their culture. Thus, employees tend to change their jobs less frequently.

Thus, organizations can effectively reduce the turnover cost along with the cost of training new employees. It allows organizations to keep a steady production with seamless growth.

Employee Motivation Increases the Work-Life Quality

Most employees nowadays are more interested in having a good work-lives balance. This tendency has been seen in millennial workers, who make a prominent number in recent workplaces.

Organizations that keep their employees motivated can offer their employees a good work-life balance. This gives the employees opportunities to separate their personal life from work life and treat each life with the necessary importance.

With this opportunity, employees can have the ability to deal with any issues of their personal life in their own time and will be able to give the best input in their work. Therefore, workplace productivity increases and excellent office culture is established.

Product Quality is Directly Associated with Employee Motivation

Employee motivation drives the quality of work and boosts performance in an organization. When organizations keep their employees motivated, production can be done without interruption. Therefore, organizations achieve great harmony in the whole workflow, influencing productivity positively.

With the harmony in workflow, there comes a decreased error margin. Therefore, the product quality has increased significantly. Also, the job performance of motivated employees is significantly higher than unmotivated employees.

With better motivation, the aptitudes and skills of employees increase significantly. Thus, they become more involved in the production process and deliver top-notch product quality.

These products increase the market value of the organization and can make the organization a household name.

Motivated Employees Focus on Customer Satisfaction

For any organization, customer satisfaction is a must. It helps the organization build loyal audiences and transform the business into a well-known brand.

When an organization has enough motivated employees, they give their best to increase product quality. Also, they put their best efforts into solving any problem concerning the product or services their organization markets.

Employees who directly interact with the customers can influence customer satisfaction significantly. When employees are properly motivated, they will utilize their best efforts to make the customer satisfied with the product or service.

When consumers are satisfied with a product or service, the organization gets recognition, and reputation increases.

With quality products and customer service, the consumers stay satisfied as they get the best products for their money. Thus, customer satisfaction increases significantly.

Impacts of Recognition in Employee Motivation

From the discussion above, it is clear that employee motivation is one of the key factors for organizational success. Better salary, incentives, working conditions are some of the important factors to motivate employees.

However, research has shown that employee recognition can drive motivation significantly. Organizations that constantly recognize the achievements and efforts of employees are achieving high productivity due to the boost in motivation.

Recognition gives employees a sense of accomplishment. It makes them feel valued and gives them confidence and willingness to accept new challenges. Thus, with a good recognition program, the company can boost employee engagement and loyalty and increase employee retention.

How Online Recognition Platforms Can Help in Building Employee Motivation

Organizations need to recognize employees for their appropriate behavior and accomplishment. Also, without timely recognition, the whole recognition process fails. Online recognition platforms can be very effective in this manner.

These platforms track all the necessary performance data of an organization. From these data, the platform can analyze what an organization needs to motivate employees. With those metrics, the platform helps organization leaders to create a custom recognition program for motivating employees effectively.

Whenever an employee fulfills any of those required metrics, the platform acknowledges and sends company-wide notifications to celebrate the accomplishment. Thus, organizations can keep track of the achievements of their employees to motivate and celebrate them properly.

While recognizing employees is possible even without online recognition platforms, they are often difficult and time-consuming. Also, manual recognition has a sizable human-error margin that can cause disputes between employees.

On the other hand, online platforms are quite accurate and can immediately recognize employees for their efforts. These efforts can keep employees engaged with the organization and motivate them exceptionally.

Despite the size of the organization, leaders should invest in a good online recognition platform for the best results for the organization.

Frequently Asked Questions

What is the relationship between employee motivation and productivity?

Motivated employees work their best to produce the best results. When most employees of an organization are motivated, the collective good work affects the overall productivity.

What is the relationship between employee motivation and recognition?

Recognition makes employees confident and inspires them to take on new challenges. Thus, employees become motivated to be their best selves in the workplace.

Bottom Line

Employee motivation is crucial for any organization. It allows organizations to prosper and use their employees’ talents strategically. Every organization needs to give its best efforts to keep its employees motivated and engaged.

Employee recognition is one of the most effective ways to motivate employees. With appropriate recognition efforts, employees feel more connected and motivated.

Online recognition platforms can help organizations recognize their employees most effectively. These platforms recognize employees accurately and immediately, which is crucial for motivating employees efficiently.

Incentivize, Recognize, Reward

Recognize increases staff productivity, provides company engagement insights, and helps retain top employees. Providing HR with an out-of-box solution since 2012.

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