The Benefits of Motivated Employees (Cambridge International IGCSE Business)

Introduction to Motivation

Spec point — "• Why people work and what motivation means • The benefits of a well-motivated workforce: labour productivity, reduced absenteeism and labour turnover"

An introduction to motivation

• Motivation refers to the inner desire or willingness that drives a person to take action and achieve a specific goal or outcome

  • Motivation can be intrinsic, coming from within a person (values, beliefs etc)
  • Motivation can be extrinsic, coming from external factors (rewards or punishments)

Why do people work?

• People work for many different reasons

  • They need to earn money to fund their lifestyle and ensure they have the necessities required
  • For some, work is voluntary or low-paid and done to give them a purpose
  • Some people work for the opportunity to mix with other people
  • For many, employment allows them to fulfil their aspirations

Why people work

Individuals go to work for a variety of reasons, including earning a wage or salary and to give them a purpose

Benefits of a well Motivated Workforce

• Motivation plays a critical role in business success

  • Motivated employees are more productive and efficient

    • They are likely to be engaged in their work and use their initiative to meet or exceed their goals
    • They will generate higher levels of output and quality
    • Increased productivity results in higher profits for the business

  • Labour turnover rates tend to be lower when a workforce is well motivated

    • Motivated employees are more likely to stay with the company long-term
    • Lower turnover rates reduce the need for costly recruitment and training

  • The reliability and loyalty of motivated workers are likely to be high

    • Motivated employees take pride in their work, show up on time, meet deadlines and take fewer sick days
    • This leads to increased trust between the business and its employees and encourages a positive organisational culture