Motivation can come from the enjoyment of the work itself and/or from the desire to achieve certain goals e.g. earn more money or achieve promotion.

It can also come from the sense of satisfaction gained from completing something, or achieving a successful outcome after a difficult project or problem solved.

Why does motivation matter in business? In short, people's behaviour is determined by what motivates them. The performance of employees is a product of both their abilities (e.g. skills & experience) and motivation. A talented employee who feels de-motivated is unlikely to perform well at work, whereas a motivated employee can often deliver far more than is expected from them!

Benefits of a well-motivated workforce

A well-motivated workforce can provide several advantages:

• Better productivity (amount produced per employee). This can lead to lower unit costs of production and so enable a firm to sell its product at a lower price
• Lower levels of absenteeism as the employees are content with their working lives
• Lower levels of staff turnover (the number of employees leaving the business). This can lead to lower training and recruitment costs
• Improved industrial relations with trade unions
• Contented workers give the firm a good reputation as an employer so making it easier to recruit the best workers
• Motivated employees are likely to improve product quality or the customer service associated with a product