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How to Motivate Employees in 2023


How to Motivate Employees in 2023

Benefits – How to Motivate Employees in 2023

The best way to motivate employees is to create a work-culture that encourages participation, professional development, and appreciation. Feeling valued, being an asset to the company, and having well-functioning collaborations with colleagues are all important aspects of employee motivation.

The goal of motivating employees is not only to increase their performance, but also to deepen the sense of belonging they feel towards the organization. A sense of belonging built on an inspiring and positive foundation is a crucial key-factor in retaining valuable talents!

Så motiverar du medarbetare

Cash is not always king

It’s easy to believe that financial incentives are the primary factor in motivating employees, but a study from Harvard shows that this is not necessarily the case. In a study involving 266 participants, two groups were tasked with the same assignment but with different pay rates ($3 and $4 dollars). The result? Both groups were equally motivated (or unmotivated) to complete the task.

A third group, receiving the same pay as the lowest paying group ($3), received an unexpected bonus of $1. While this increased their total compensation to $4, the bonus was unexpected and served as a thank-you for their effort. For the employees, the bonus was unexpected, but the surprise element in the bonus motivated them more than expected, leading to a 20% increase in productivity.

The conclusion of the Harvard study is that there are other factors that motivate employees beyond just salary. Various non-monetary factors such as respect, feedback, and skill development also serve as motivators. With that said, money is simply not everything when it comes to motivating employees. Additionally, people are different, and some may be motivated by financial compensation or competitions, while others may be motivated by different incentives. This is why it’s important to get to know your employees and customize benefit offerings.

Customize benefits

Start by understanding what each employee values the most. It could be the opportunity to work remotely, skill development, financial compensation, flexible work hours, or something entirely different. A great way to motivate your employees is to see each individual and tailor the benefits to their individual needs and preferences.

Offer opportunities for growth in roles

Many people feel motivated when they have the opportunity to grow and advance in their careers. Therefore, offer your employees the chance to develop professionally, for example, by implementing mentorship programs and providing them with various types of training. Many get bored with tasks that are too easy, but when employees who want to grow and achieve new goals are given the opportunity, it can be the decisive incentive for the company to retain valuable talents.

Together we are strong (and motivated!)

Strengthen participation in the workplace by involving employees in decision-making. When employees feel involved in the company’s successes, motivation also increases. “Together we are strong” may sound like a cliché, but sharing a common goal is about feeling a sense of belonging, which is the foundation of trusting relationships.

Competitive benefits for clear goals

Financial compensation like salary and bonuses is one thing, but it’s also important to offer other benefits such as healthcare, retirement, and other perks that can help employees in their lives – both at home and at work. The goal should always be to help the employee become the best version of themselves, with healthy habits and a balanced work-life.

Create a culture of appreciation and feedback

Provide regular feedback and evaluate employee performance. Clear feedback is an important part of creating motivated employees. And by creating a workplace culture characterized by appreciation and good working relationships, conditions are set for a significant increase in motivation.

Final thoughts on motivation

Research shows that what motivates us is individual, but we are all influenced by the organizational climate and the people around us. With this in mind, there’s a lot you can do to help your employees reach the next level. Reflect on the last time you gave feedback and praise to the people around you; remember that a change in corporate culture starts at the top.

Harvard Business School: Do employees work harder for higher pay?


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