Munich, 23.03.2024

What truly motivates employees:
An analysis and practical tips

Why salary and clear instructions are not the decisive drivers

In a survey of 12,000 LinkedIn users, there was an extremely inconsistent opinion on what motivates employees:

What impacts your employees' engagement the most?


Survey results What motivates employees

Survey Results

  • 30 % of respondents believed that engagement is created through salary.
  • 30 % said that engagement is created through clear instructions and standards.
  • 28 % consider empowering leadership to be the means of choice to generate employee engagement.
  • 12 % prioritize the 4-day week as a motivational tool.

These inconsistent opinions raise the question of whether leaders are fumbling in the dark when it comes to the motivation and engagement of their own employees.
However, research and current studies show that these approaches should not be considered in isolation.

Salary as a motivational factor

While salary plays an important role as an entry criterion for a new job, research shows that it often takes more than just financial incentives to generate genuine motivation.

According to a study by Achievers Workforce Institute, flexibility and career development are on par with salary as primary reasons for job choice in 2023.

Source: 2023 Employee Engagement and Retention Report - Achievers

Clear instructions and standards

Clear communication and goal setting are important, but not sufficient on their own.
A Gallup study shows that regular feedback and communication, above all, can increase motivation by 43%. This indicates that clarity is important, but should be considered in combination with other factors.

Especially in terms of communication and positive feedback, sometimes simple yet sincere sayings and appreciation are enough to motivate employees.

Source: Employee Motivation Statistics 2023: Trends, Insights, and Strategies - Pen What Matters

Current studies and scientific perspectives on employee motivation

Self-Determination Theory

This theory emphasizes the importance of autonomy, competence, and relatedness as central motivational factors (Deci & Ryan, 1985). Employees are more motivated when they feel they have control over their work and can use their skills.

This highlights the high importance of methods to promote employee motivation beyond salary.

Source: Employee Engagement & Motivation | Factsheets | CIPD

Importance of Flexibility

The 2023 Employee Engagement and Retention Report highlights that flexibility and work-life balance significantly contribute to employee motivation.

77% of employees say that their employer's commitment to their well-being has a significant impact on their decision to work there.

Source: 2023 Work in America Survey: Workplaces as engines of psychological health and well-being (apa.org)

Empowerment and personal development

Studies show that empowering leadership and development opportunities are crucial. Employees who feel valued and supported show higher motivation and engagement.

Source: Employee Motivations Have Changed, and So Should Your Strategy (shl.com)

Five tips for generating leadership motivation in everyday work

  1. Clear communication and goal setting
    Regular meetings and transparent goals create clarity and foster engagement.

  2. Recognition and appreciation
    Regular recognition and personalized incentives increase the feeling of appreciation and thus motivation.

  3. Further training and development opportunities
    Invest in the continuous training of your employees to foster long-term commitment.

  4. Empowering Leadership
    Give your employees more autonomy and decision-making power to strengthen their intrinsic motivation.

  5. Flexible working models
    Consider individual needs through flexible working models such as the 4-day week or home office options.

Conclusion

Nobody wants 9-to-5 employees, and no company wants to be average. The development, growth, and retention of employees depend crucially on their engagement.

Leaders should understand that it takes more than just salary and clear instructions to motivate employees. Therefore, they should know the factors that influence engagement and act accordingly.

A combination of clear structures, recognition, development opportunities, empowering leadership, and flexible working models can help create a motivating work environment.

Tip for HR professionals: First and foremost, a clear, common understanding of leadership in the company is helpful. Define "leadership quality" in a pragmatic, implementable way and evaluate leadership performance in employee appraisals.

Sources

  • Pen What Matters (2023). Employee Motivation Statistics 2023: Trends, Insights, and Strategies.
  • Achievers Workforce Institute (2023). 2023 Engagement and Retention Report.
  • SHL (2023). Employee Motivations Have Changed, and So Should Your Strategy.
  • CIPD (2023). Employee Engagement & Motivation Factsheets.

Further Links

  • Leadership Training: Weiß & Senninger have been offering experience-oriented and inspiring leadership training since 2000: www.wei-sen.de
About the Author:

Tom Senninger
Tom Senninger		 Tom Senninger is a human resources and organizational development expert, and has been conducting leadership development programs for 25 years.

With his leadership blog, he aims to contribute to improving leadership quality in companies: less management - more leadership!

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