Motivation & Employee Performance

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   Employee motivation and performance are key factors in moving a small business forward. Owners, managers and supervisors know positive motivation leads to better performance and higher productivity but may rely on the wrong tools. Microsoft Business states the conundrum as "using monetary and other rewards to improve motivation is a simple idea, but doing it fairly and effectively can be challenging."

   Reinforcement

   Essentially the two types of reinforcement are positive and negative. Positive reinforcement is using beneficial incentives to boost morale and productivity, such as performance based bonuses, sales commissions, achievement rewards, pay raises and promotions. Negative reinforcement is using unfavorable tools to achieve desired results, such as bad performance reviews, verbal and written warnings, suspension, pay reduction or dismissal warnings.

   Benefits 

   Benefits as motivators can boost job performance. Pay raises, bonuses, stock options and profit sharing are examples of positive motivators. These motivators reward employees for not only doing their job, but doing it well and with enthusiasm. However, these motivators are to retain normal levels or morale but do not necessarily increase overall motivation levels. Management Help includes money as a myth of motivating small business employees as "things like money, a nice office and job security can help people from becoming less motivated, but they usually don't help people to become more motivated."

   Goal Setting

   An important part of improving employee motivation and performance is clear, attainable goals. Informing your employees of goals you have set for your small business improves focus and team cohesion. Business consultant Harvey Wigder states, "if people are communicated to and if they understand the ground rules, they know that if things don't work they're not going to get incentives."

   Employee Input

   Regularly engage your small business employees on issues that effect productivity and morale. Being engaged imparts parity and demonstrates your ability to be an effective leader as one in touch with employee concerns. NOLO suggests asking employees for ways to improve working conditions: "if the answer is better lighting, or a more efficient computer, or a chance to work at home one day a week, you can often reward the employee by following through on the request."

   Considerations


   According to Accel Team, research consistently shows that employees who are well motivated perform better and add value to a small business. However, "the inverse also holds true." Meaning unmotivated employees produce less and do not substantially contribute to businesses.

   References:
  •           Management Help: Clearing Up Common Myths About Employee Motivation
  •           Accel Team: Employee Motivation--Theory and Practice
  •           Microsoft Business: 4 Ways to Reward, Motivate Employees
  •           NOLO: Motivating Your Employees

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