Globalization has facilitated the exchange of human resources, with firms continuously exploring methods to retain the most talented staff members (Kulesza, n/d). Effective employee retention may be achieved via several means, including offering increased remuneration, enhanced perks, or novel status emblems that are widely recognized as effective strategies (Marchington et al., 2003). Certain employees are primarily driven by their desire to excel in intellectually stimulating tasks. According to Kressler (2003), motivation is a primary behaviour activated by the staff’s drives and desires. Hence, motivational management approaches must provide a favourable working environment and foster practices and policies that trigger improved performance among staff members (Armstrong, 2009). The impact of low employee retention might be substantial. Porter, Bigley, & Steers (2003) found that organizations experience a financial loss of approximately $1 million when they lose ten high-ranking personnel. According to Sunil (2003), a disengaged employee’s effect on the company’s turnover might range between the first and second year of their annual salary, depending on the circumstances. Employee turnover can have significant economic effects on an organization (Uwimpuhwe, 2019). Therefore, this paper elucidates and synthesizes effective staff motivation strategies and organizational performance globally, drawing insights from relevant theories, contextual literature, and current industrial practices (Varma, 2018). The analysis also assesses the strengths and hurdles of various international firms’ employee motivation strategies and provides suggestions based on observed practices.
Leadership is crucial in guiding and organizing members of a structured team to achieve specific objectives that are essential for the success of an organization (Ogbeide, 2008; Rost, 1993). Kryscynski et al. (2020) posited that the likelihood of leaders achieving success is low if they fail to motivate their staff. Two often discussed leadership styles are identified in the literature, each exhibiting distinct features and leadership behaviours (Prakash, 2015; McGregor, 1960; Kim et al., 2015). Based on the fundamental principles of management practice and employee motivation, there are distinct differences between transactional and transformational leadership styles (Koontz et al., 2020). One primary managerial duty is establishing measurable objectives, developing and conveying strategies, and creating plans to achieve those objectives (Christensen and Walumbwa, 2013). Zaccaro et al. (2008) argue that the responsibility of a leader extends to establishing a dynamic work environment that provides appropriate tools, information, and feedback for compelling staff motivation. Therefore, leadership is tasked with fostering a conducive work environment that encourages team building and collaboration to quickly achieve shared goals (Almeida et al., 2022). According to researchers, leadership is the most critical factor in motivation (Varma, 2018). Despite initial conditions provided by the organization for managers to effectively motivate employees, a manager can create an environment that encourages and motivates subordinates within their responsibilities and even beyond, if desired (Neill & Selesho, 2014). Drawing from the findings of Kryscynski et al. (2020), workers are likelier to adopt a similar work strategy as their colleagues and experience job satisfaction, establishing a strong rapport between them. The organisation’s Management and leadership styles can significantly influence employees’ Job satisfaction, motivation and overall happiness in work settings (Neill & Selesho, 2014).
Leadership and management are interconnected concepts in an organizational context crucial for driving success and meeting strategic goals (Benn et al., 2019). As established by Zaccaro et al. (2008), leadership is considered a process of influencing followers to understand and agree on what needs to be done and how issues should be done and handled, while management is the process of coordinating and supervising work activities to ensure their efficient completion and the achievement of corporate objectives (Appleby et al., 2020).
Leadership and management differ in their distinct natures (Punch, 2015). Managers are reactive and willing to collaborate with individuals to solve challenges while maintaining minimal emotional involvement. However, leaders get emotionally attached while seeking to shape ideas rather than reacting to individual ideas (Tirintetaake, 2017). Managers work for many problem-solving alternatives, while leaders focus on controlling, mitigating, and managing risks (Benn et al., 2014). Leadership and management work as a matching pair within an organization, inspiring people to work together and achieve set targets. Kotter (2018) argues that managers should simultaneously take both leadership and management perspectives.
Leadership theories include transformational leadership, which generates innovative ideas and fresh perspectives to drive business development and success, and servant leadership, which emphasizes exceptional moral qualities and skill (Malingumu et al., (2016); Christensen and Walumbwa, (2013). According to Korejan and Shahbazi (2016), transformational leaders focus on aligning individual interests with communal goals, while servant leadership prioritizes the needs and interests of subordinates, building lasting relationships, and empowering their followers (Smallfield et al., 2023).
Management theories include Frederick Winslow Taylor’s scientific management theory, which aims to improve production and reduce labour costs by identifying desired tasks and ensuring their efficient completion (Jensen, 2017). Human Relations theory emphasizes treating employees as human beings and treating them fairly, focusing on individual employees, informal organizations, and participative management (Tirintetaake, 2017).
While scientific management and human relations theories are crucial for achieving company objectives, they differ in treating employees as robotic machines and focusing on human relations at work. By understanding these differences, managers can develop competent leadership strategies, optimize management, and create a work environment conducive to employee engagement, creativity, and long-term success.
Motives drive individuals to take action or acquire a preference for a particular way of working. Motivation is the inward drive or impetus that compels people to fulfil their basic needs or desires (Uwimpuhwe, 2019). The motivating process is a cognitive process in which employees make decisions (Pardee, 1990). Furthermore, motivated personnel demonstrate commitment to their jobs to accomplish the organisation’s objectives while remaining loyal to their employers (Kryscynski et al., 2020). Fernández-Muñiz et al. (2009) and Pang & Chin-Shan (2018) have posited that there is a significant and positive correlation between Job satisfaction or motivation and both organizational and Job performance (Benn et al., 2019. Studies have shown that prompt awards are crucial to directly impacting employee performance (Kryscynski et al., 2020). Commonly used strategies for motivating employees include compensation, advancement opportunities, performance incentives, and other rewards (Pang & Chin-Shan, 2018).
The need for substantial value can be fulfilled using money, which appears to be the fundamental motivating tool and an incentive (Rynes, Gerhart and Minette, 2004). Therefore, money can attract, retain, and inspire people to achieve better performance levels (Adler, 2007). Salaries can become a powerful incentive in cases where the management implements pay structures that reflect the significance levels of specific roles as assigned by an organization, remuneration tied to performance, and additional allowances, perks, and retirement plans (Adler, 2007). Motivation is a considerable leadership behaviour, a claim underpinned by theories that posit that managers and employees have the potential to elevate one another’s levels of morality and motivation (House, 2004). Considering the concept of self-determination theory (SDT), motivation in the workplace can be categorized into two significant paradigms: extrinsic and intrinsic motivation (Guay et al., 2000). Intrinsic motivation is an individual motivator, whereas extrinsic motivation suggests that an individual’s effort to perform a task is influenced by factors such as the organization, the nature of the task, and the work environment (Boakye et al., 2015). Intrinsic motivation is an individual motivator, whereas extrinsic motivation suggests that an individual’s effort to perform a task is influenced by factors such as the organization, the nature of the task, and the work environment (Marczak and Yawson, 2021).
An understanding of employee motivation may be achieved by analysing many prominent ideas. This chapter encompasses key ideas formulated in the literature, such as Herzberg’s Two-Factor Theory and Maslow’s hierarchy of needs.
Maslow’s hierarchy theory is a framework for understanding how an individual’s needs and motivations change throughout their career. Maslow (1943) categorized the demands of employees into five hierarchical levels: physiological, safety, social, ego, and self-actualization. He contended that lower-level desires must be satisfied before higher-level requirements. People’s reactions to incentives differ based on their rank within the hierarchy. Individuals in the lower strata of the social hierarchy would display unique reactions to motivational challenges compared to those higher in the hierarchy (Fieldman, 2020. Fundamentally, each person has fundamental needs for survival, including nourishment, hydration, shelter, and safety (Zaccaro et al., 2008). The subsequent section examines the significance of social interaction, regard, self-worth, and the aspiration for personal advancement and progress, as stated by Marchington et al. (2003). As established in the concept, personal needs might differ from the most basic level to the most advanced level of the pyramid as people aspire for personal growth and development. This implies that people can move to the next level of desire only after fulfilling the immediate category. This could be linked to a financial investment or individual accomplishment.
Herzberg’s Two-factor theory is also referred to as the Motivator-Hygiene hypothesis in academic literature. This hypothesis was created via a study on a cohort of accountants and engineers to recognise the characteristics that lead to people’s satisfaction with their employment (Saif & Afnan, 2013). This concept embraces the fact that the involvement of employees in a struggle is far more inspiring than any of the motivation factors from the management from the complete opposite end of the spectrum. Tool of Hygiene Factors and Motivator Factors differentiated satisfying factors from dissatisfying variables (Lumen Learning, 2021). He noted that five work characteristics contribute to satisfaction: fulfilment, appreciation, the job’s specific nature, blame, and result. Consistency factors involve institutional politics, management style, tasks attributed, staff engagement, peer relationships, and workplace conditions (Korejan and Shahbazi, 2016).
A fundamental criticism of Maslow’s hierarchy is his unscientific methodology, faulty sample selection, and the methodological analysis utilized to draw his results, which primarily relied on personal observation and biographical study. The source is cited as Winslow (2016). As suggested by Wahba & Bridwell (1976), the previous researchers’ theories on Maslow’s Need Hierarchy show little consensus in pointing a clear direction to the reliable fact. One main criticism is the inbuilt ethnocentric bias, which is a technological problem. Though famous for putting individual experience as the cornerstone of his reasoning, it is contended that he takes inadequate account of its social differentiations.
The appearance of practically unlimited exceptions for this pyramid is usually considered not minor but quite a serious shortcoming to the theory. You’ve come a long way since you first read Maslow’s “Hierarchy of Needs” and saw his point on self-esteem, being that not all individuals prioritize love, while some, on the contrary, choose to ignore love and work on self-esteem only. As Winter (2016) pointed out, the properties of his theory that are crucial in academics are its simplicity, orderliness, and intuition, which contribute to its significant practical utility. The concept of transitioning from fundamental survival requirements to more advanced development needs resonates with many individuals in their everyday lives. Regarding the two-factor theory, there are numerous criticisms, particularly in modern critiques, that focus on various issues. The notion appears to be carefully associated with the critical event technique (Golshan et al., 2011). The data’s reliability may have been compromised due to the employee’s ego-defensiveness. Typical variables that are shared across the two categories of contentment and discontent overlap with one another. The value of each element varied based on the employee’s occupational level. The idea fails to acknowledge the impact of individual variations among workers (Herzberg, 1986).
One further critique of Herzberg’s technique is the potential for respondents to provide false responses and express views that may result in misunderstanding and cause discontent. This misinterpretation may occur when external factors are mistakenly assigned as the cause instead of internal ones (Steel, 2011). Herzberg’s use of the critical event approach was a notable point of criticism due to its dependence on the respondent’s recollection, which made it vulnerable to prejudice (Jensen, 2017). Nonetheless, human resource practitioners may use the data points despite the inherent problems associated with the approach (Winter, 2016). Herzberg’s contribution to human resource development was crucial since it identified the aspects that contribute to employee happiness.
As corporations do by developing exclusive value for clients with the aim of standing out, managers, on the other hand, create a different value with unique staff worth (Kryscynski et al., 2020). Some organizations do that by encouraging staff members not to follow one rulebook but by giving them creative bonuses and benefits that only they can use and that other companies cannot copy (Jung and Yoon, 2016). These particular incentives make these institutions leaders in attracting, inspiring and keeping the top half of the society at a minimum cost. Therefore, they have an advantage over others (Henry, 1986). The communal inducing factors in organizations consist of job security, social support, and the work situation, such as promotions and career advancements, competitive payment packages, insurance coverage, and paid vacation (Aslam & Hussain, 2014). The objective of the presentation is to illustrate some motor factors why workers are motivated to contribute to the success of an organization. The following categories will be used to structure the discussion:
The problem of security at work, which is the major one, has manifested itself in most labour markets (Clark, 2009). So, any actions that employers can incorporate to keep employees productive by guiding, instructing, and even mentoring are steps towards the improvement of the morale of workers in the workplace (Stello, 2011). The employer needs to treat all employees equally and keep them calm in the circumstances given when they think their job is at risk or feel demoralized (Benson, 2014). In the report of Behrend et al. (2011), there is more benefit in changing top-performing workers than the cost of keeping them and having preferred clients. Some business owners consider worker retention highly important, and all companies are supposed to do the same. CarMax ranks in the top 15% of its peers in that area among firms of comparable size in terms of retention of highly competent staff. CarMax reported that 67% of workers expressed interest in staying with them even if they were throwing the chance of working in a higher-paying company.
Moreover, 70% of the employees each day were pleased with the work; hence, they were very enthusiastic too (CarMax, 2022). Compared to the previous eight years, when the car sales for CarMax rose by 116% at a climbing pace of 14.5% each year, the past year saw a growth rate as high as 15.6% compared to the last year. Firstly, this expansion can largely be attributed to the soaring bond connecting CarMax and its employees (CarMax, 2022). When the storm occurred during the 2008 crisis, Tom Folliard, the president and CEO of the company, stood firm on the issue of not reducing the workforce. Instead, he invested more in employee programs (Ting, 2015). The performance of the training and development part of CarMax had increased progressively, thus allowing the staff members to become more competent and progress within the company. This has not only been one of the usual factors of CarMax’s culture, but it has also helped the company to develop and grow (CarMax, 2022).
Social support is the support offered by individuals, groups, or communities to help an individual and provide resources to deal with various challenges and improve their well-being (Smallfield et al., 2023). One of the most effective ways to build interest and enthusiasm among staff is to competently and skillfully execute a range of corporate projects involving all of them at once (Bontis and Fitz 2002). To some extent, employee motivation has also been aided by creating welcoming assimilation programs (Kryscynski et al., 2019). The illustrations of such strategies may include bringing about the avenues where the sharing of a learning experience, as well as freedom to customize the learning experience, is possible and also providing both practical and informal events to connect the individuals and also involve the elderly person as the role model for the recruits (Comparably, 2022).
According to a study performed by Alm and Ertemel (2020), support from superiors and peers is a significant driver of job satisfaction, work engagement, and commitment to the organisation, regardless of individual differences. Researchers argue that social activities may help people learn social communication skills, find friends, and get the necessary technical training for employment. Since its establishment in Brooklyn, New York, Big Spaceship has focused on consultancy services and provides strategies in technology and design (Integrity, 2018). The company works with established consumers such as Nike, Google, and JetBlue. The organization regularly promotes worker interactions and supports group activities to foster a healthy working atmosphere (Jeffrey, 2015).
Furthermore, Big Spaceship allows its workers to come with their pet dogs to the workplace to improve the work environment and lower the workers’ stress levels. This approach is practical because the company is small and has less than 100 workers (TINYpulse, 2015). The establishment makes it possible for its employees by allowing them to have break times from their workstations and leave the office so that much of the sit-staying has a negative output in productivity. Still, they enable the work to be done well (Interact, 2018). The firm’s highly motivated and innovative staff benefits from its outside-the-box approach, which provides unique marketing tactics for its customers (Shahzadi et al., 2014). The company’s open environment philosophy, which offers equal opportunity for self-expression, has promoted unity and created a strong feeling of worker participation (Punjaisri et al., 2015). This report states that Chen et al. (2020) push employees to use bicycles or electric cars to transport them to meetings. Besides, they host gaming rooms, greenhouses, and organic-made items. The employer proactively reflects on the workers’ needs and strives to maintain a positive environment (Odumeru and George, 2013).
Promotion is frequently defined in literature as the progression of a person’s rank or status in an organization. However, understanding promotion as a good outcome is contingent upon the specific employee being promoted. Pang & Chin-Shan (2018) found that promotion fulfils the need for acknowledgement and enhances workers’ self-evaluation. At Adobe, career progression is prioritised (Hanaysha and Hussain, 2018). In this regard, employees who have served for a while are notified early, aside from intimation of company job openings two weeks before the public announcement. The mark is $10,000.
Annually, each employee is allocated money to support their pursuit of further education. According to Adobe’s 2021 report, they have consistently achieved an average customer satisfaction rate of 90% with a year-on-year gain of 15%. Irrespective of the organizational structure, all employees like being recognized for their accomplishments and want to be valued for their skills (Senge, 2011). Implementing an equitable promotion program inside the organization is vital for promoting the workers’ enthusiasm (Conger and Rabindra, 1992). Regarding promotion, there is a more significant level of responsibility, more expectations for performance, access to better facilities, an elevated position, and a more vital need for competence (Adeyinka et al., 2007). Additionally, there are increased pay or salaries and additional allowances.
As stated by Bullock et al. (2015), Salaries have a considerable influence on motivating employees and nurturing their commitment, diligence, dedication and loyalty towards work. A meta-analysis of research shows that performance-contingent remuneration is the most operative motivational strategy for encouraging employees to achieve their most significant levels of performance (Ryan & Deci, 2004). According to Maslow, workers must be given a salary to achieve a desirable quality of life (Asaari et al., 2019). This ideology is based on the notion that an employee experiencing hunger would have problems generating significant contributions to the company. PSG and Real Madrid football clubs are renowned for their capacity to reliably recruit the most talented and best football players in the world, mainly owing to the generous salary packages offered by both teams (Cheh, 2020). The Real Madrid club is famous for its ability to search for the best players in history, who are referred to as the Galacticos (ESPN, 2021), regularly displaying some of the costliest lineups in the history of the modern world of sports. Real Madrid’s constant success in local and continental competitions has made them one of the most valued and respected football teams globally (Real Madrid, 2021). As of 2021, its brand worth exceeds €1,200 million. Nonetheless, the club adheres to a transactional leadership philosophy, which allows for hiring and firing workers through the management’s approval. However, to retain motivation, the club provides generous salaries to its employees (Adeyinka et al., 2007).
Employee motivation is primarily focused on promoting changes in behaviour (Shah et al., 2014) that may enhance organizational productivity. Motivation is an enhancer that empowers an employee to work towards meeting an organisation’s set goals and objectives. Grant’s research found that motivation drives productivity, performance, and perseverance (Grant, 2008). An individual who is highly motivated has a stronger inclination towards autonomy, enabling them to be more self-directed in seizing growth possibilities compared to less motivated colleagues (Grant, 2008). Upholding and practising employee motivation is a vital factor in the performance of different organizations (Hancock, 2018; Asad et al., 2019). Kalimullah (2010), as referenced by Manzoor (2012), proposed that motivated personnel synchronize their objectives with those of the organization and channel their efforts towards attaining them.
Aflac, a United States-based insurance company, is a prime example of effectively aligning organizational stratagems with emotional motivations across several aspects. The business considers several elements that influence emotional motivation; these aspects include but are not limited to employee appreciation week, among others (Aflac, 2022). Moreover, Aflac also allocates a considerable budget for training employees to ensure that they are aligned with the organisation’s objectives (Mahdikhani and Yazdani, 2020). Additionally, it regularly allocates resources towards training and development to achieve its objectives (Jeff, 2015). The company also has other tasks beyond sales, including but not limited to the development of training curriculum, recruitment, and management (Statistica, 2022). The company’s stated philosophy is based on prioritizing workers, with the belief that employees would reciprocate by providing excellent customer service. The firm’s success may be attributed to its position as one of the USA’s most prosperous insurance broking companies. In the fiscal year that ended (FYE) 31 December 2021, it generated revenue of approximately 22.11 billion USD, representing a 2.5% increase over 2018, despite the pandemic’s economic challenges (Statista, 2022).
Every company is founded to achieve high performance. Prior studies in human resource management have shown that participative management plays a crucial role in enhancing organizational performance (Jeffrey, 2015; Pang & Chin-Shan, 2018; Mature et al., 2020). Influential leaders must harness the genuine commitment of all personnel to enhance a company’s performance to its fullest potential. This can only occur when workers see themselves as equally significant to their actions (Malingumu et al., 2016). To enhance performance and achieve desired outcomes, leaders must cultivate cooperation and create a collaborative atmosphere (Behera et al., 2011). Consequently, they must acknowledge and tackle their employees’ physiological, safety, belonging, and esteem demands.
To create a work environment that enhances the development of trust and supports the workforce to attain high-performance levels, employers must carefully consider their employees’ physiological, safety, belonging, and esteem requirements as stakeholders. Using a theoretical perspective, this research has highlighted the critical roles that managers and leaders of firms accomplish in motivating people. Staff motivation is significant in organizational performance, and the competitive advantage of enterprises has been recognized. A practical and lucrative company strategy involves prioritizing workers, ensuring they are treated with respect and decency, recognizing their individuality, and acknowledging their responsibilities and contributions to a larger purpose. Businesses and brands have the most significant potential when employees are provided with a secure and conducive environment where they do not live in fear. In such an environment, employees can bring out their best and be more productive.
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