Motivation may stem from personal interest such as keeping safe or from external factors such as praise and reward. Different theories have been suggested for motivating employees. Pay is considered a primary motivator. Other motivating factors include: • Appreciation of hard work
• A sense of achievement
• Responsibility and empowerment
• Opportunity for advancement
• A sense of challenge and enjoyment.
A motivated workforce will work harder and achieve greater output in less time, therefore reducing labour costs. It requires less supervision and demonstrates pride in its work, making a greater impact on the customer. Motivated employees have greater concentration and are less likely to make mistakes, cause accidents or be involved in conflict. They are also likely to show greater loyalty to the company and have less absenteeism. An unmotivated workforce will be the opposite, being dissatisfied with its role in the work environment. This can negatively affect both the quality of the work as well as how efficiently employees carry out their jobs. When we examine methods of motivation that can actually be applied in the workplace, we can categorize them into financial and non-financial methods. Financial Methods
Financial methods directly involve monetary rewards e.g. bonuses, pay raises, pensions etc. Non Financial Methods
Non-financial methods, though perhaps indirectly bringing monetary rewards, are targeted at providing psychological benefits for workers. Both financial and non-financial methods have costs to the employer, either through direct costs such as extra pay, or indirectly through the provision of training or management time spent. The existence of these costs is one of the main reasons why a consistent approach to motivation is hard to achieve in the long run.
Types of Financial Motivation.
The most basic method of payment is a piece rate. When a piece rate is paid workers are paid for each item...