Motivation and demotivation

Five.

People have five levels of needs, and lower needs must be satisfied before higher needs can motivate.

It is a simple framework that helps managers identify different employee needs and choose suitable motivators.

Physiological, safety, social (belonging), esteem, self-actualisation.

Pay.

Not everyone follows the same hierarchy; people can prioritise different needs at different times.

Some cultures may prioritise social belonging over individual esteem, so the hierarchy may not apply in the same order.

Job security, safe working conditions, contracts, or health and safety protection.

Social (belonging).

Recognition, praise, responsibility, promotion, awards, or status/job title.

It is hard to prove which level an employee is at, and people can be motivated by several needs at once.

Esteem.

Because employees focus on security first; higher-level rewards do not motivate if basic needs are unmet.

Identify the relevant need level and apply it to the specific business context.

Self-actualisation.

Making work more meaningful by adding challenge, responsibility and variety (targets Herzberg motivators).

Satisfaction and dissatisfaction come from different factors: motivators create satisfaction, hygiene factors prevent dissatisfaction.

Two.

Achievement and recognition (also: responsibility, advancement, personal growth, the work itself).

Giving employees authority and autonomy to make decisions about their work.

Dissatisfaction.

Pay and job security (also: conditions, policies, relationships, status).

Satisfaction.

Because pay is a hygiene factor; it prevents dissatisfaction but does not create lasting motivation.

Hygiene.

Recognition programmes, promotion/advancement opportunities, job enrichment, or giving more responsibility.

Because pay is a hygiene factor: it removes dissatisfaction but does not create lasting satisfaction on its own.

Motivators.

Identify whether the issue is dissatisfaction (hygiene) or true motivation (motivators), then apply to the case.

Hygiene.

Fixed.

Nature of the work, employee preferences, business objectives, cost, culture, or motivational impact.

Wages are usually paid per hour/units; salary is a fixed annual amount paid monthly regardless of hours.

Sales.

Salary supports consistent standards; commission may encourage aggressive selling over quality.

Pay linked to sales value or volume, common for sales roles.

Profit.

It aligns employees with overall business performance and encourages teamwork toward profitability.

Employees receive a share of business profits, aligning employee interests with business performance.

Pay linked to meeting specific performance targets (often set during appraisal).

Bonuses/commission can turn fixed labour costs into variable costs that fall when sales/profits fall.

Non-cash.

Because rewards affect motivation differently (e.g., Herzberg: money prevents dissatisfaction but motivators create true motivation).

Company car, private healthcare, pension contributions, gym membership, subsidised housing.

Motivation.

Motivators.

Methods that motivate employees without directly increasing pay, such as recognition, autonomy and job enrichment.

Responsibility.

Making work more challenging and meaningful by adding variety, responsibility and autonomy.

Social (belonging).

Enlargement adds more tasks (wider). Enrichment adds more responsibility/challenge (deeper).

False — money mainly prevents dissatisfaction.

Public praise, employee of the month awards, thank-you messages, or celebrating achievements.

Poor management, lack of recognition, boring work, unfair policies, poor conditions, or no progression opportunities.

Use a motivation theory (e.g., Maslow/Herzberg) and apply it to the business context.

Pay transparency; fair reward — if employees discover unfairness, motivation drops sharply.

People compare their inputs (effort, skills) and outputs (pay, recognition) to others — unfairness causes demotivation.

Inputs: effort, experience, skills, time. Outputs: salary, bonus, recognition, promotion.

Esteem — feeling valued and fairly treated.

Hygiene factors — pay and conditions must be perceived as fair.

Equity (fair) — motivated and satisfied.

Inequity (unfair) — demotivated, may reduce effort or demand more.

Reduce effort, demand more pay, change comparison person, leave, rationalize.

Complex, creative, problem-solving; routine, mechanical work.

Autonomy (freedom), Mastery (getting better), Purpose (meaningful mission). A-M-P.

Reduce — extrinsic rewards can undermine intrinsic motivation.

The desire to direct our own lives — freedom over what, when, how and with whom we work.

Financial — similar to Maslow's higher needs being relevant only after lower needs satisfied.

The urge to get better at something that matters — learning, developing skills, facing challenges.

The yearning to do work in service of something larger than ourselves — a meaningful mission.

Self-actualization; motivators; equity — all relate to higher-level motivation.

Autonomy + mastery — engineers spent one day/week on personal projects, creating Gmail and Google Maps.