Relationship between Motivation and Employee Retention- Article 1 (MBA-Course Module: MN7234ES- People and Organizations: Principles and Practices in Global Contexts
Relationship
between Motivation and Employee Retention
Employees can be motivated by financial rewards and non-financial rewards. In the current business context, financial rewards are not enough to satisfy the employees on their jobs. For organizations to motivate and retain employees the organizational culture, compensation, reward, recognition, promotion opportunities, work environment and organizational justice should be present (Shah and Asad, 2018).
Businesses should be mindful of Herzberg’s theory of two dimensions of motivation to work. One is referred to as the hygiene factor also called dissatisfactors clearly articulates that work conditions, company policies, supervisions, salary, safety and security should be there. The other is called motivators. This embeds factors such as personal recognition, achievement, engaging work, meaningful responsibilities, career advancement, and personal growth opportunities (Gordon, 2023). Therefore, we can clearly see from a motivational theory such as Herzberg’s Two Factor Theory of Motivation that if organizations want to retain their employees for the long-term, they will have to incorporate and practice effective motivators.
Therefore,
an organization that has a workforce that is motivated will have the following benefits:
Performance-
motivated employees complete their tasks more efficiently, show greater energy
and focus, and find better ways to improve workflow. They will be more likely
to exceed targets and complete assignments on time (Leapsome Team, No Year).
Productivity-
staff motivated to perform well and get better results. For instance, a
motivated sales team will get more clients and bring more revenue. This will
enable the company to offer incentives (Leapsome Team, No Year).
Engagement-
when employees are motivated, they have a deep emotional connection to their
work and organization. Research shows that engaged staff are less likely to
leave their jobs (Leapsome Team, No Year).
Culture-
psychological studies demonstrate that motivated employees will create a
positive effect on the overall work environment (Leapsome Team, No Year).
Lower
Employee Absenteeism and Turnover- motivated staff arrive to work on time and
accomplish their tasks on time and stick with the organization longer
(Schooley, 2023)
Positive
Company Reputation- motivated employees speak positively about their
organization. Attract new talent. Moreover, provide better customer service to
consumers. (Schooley, 2023).
Consequently,
the motivated staff will have increased job satisfaction and be retained by
their employers. Therefore, we can say that there is a correlation between
motivation and retention.
References
eCardWidget,
(No Year) How to Motivate Employees: 12 Easy Ways to Uplift Workers Available
at: https://ecardwidget.com/how-to-motivate-employees/
(Accessed: 18 November 2023).
Gordon,
J. (2023) ‘Herzburg’s Two-Factor Theory (Hygiene Theory)- Explained’, The
Business Professor, 18 October. Available at: https://thebusinessprofessor.com/en_US/management-leadership-organizational-behavior/herzburg-two-factor-theory-defined (Accessed: 18 November 2023).
Leapsome
Team, (No Year) ‘What is the role of motivation in employee retension’, Leapsome,
NA. Available at: https://www.leapsome.com/blog/motivation-for-employee-retention#:~:text=%E2%80%8D-,The%20impact%20of%20motivation%20on%20employee%20retention,re%20more%20likely%20to%20stay. (Accessed: 16 November 2023)
Shah,
M. and Asad, M. (2018) ‘Effect of
Motivation on Employee Retention: Mediating Role of Perceived Organizational
Support’, European Online Journal of Natural and Social Sciences, 7(2),
pp. 511-520. Available at https://www.researchgate.net/publication/331547935_Effect_of_Motivation_on_Employee_Retention_Mediating_Role_of_Perceived_Organizational_Support#:~:text=The%20findings%20revealed%20that%20intrinsic,intrinsic%20motivation%2C%20and%20employee%20retention. (Accessed: 17 November 2023).
Schooley,
S. (2023) ‘Beyond the Clock: The Benefits of Highly Motivated Employees’, Business,
6 November. Available at:
https://www.business.com/articles/the-benefits-of-highly-motivated-employees/
(Accessed: 18 November 2023).
Retain the existing employees is more important. I totally agree with you. Employee retention refers to an organization's ability to retain quality employees. The retention rate is often expressed as a percentage and the goal is for it to be high. (J Herrity, 2023) For example, a retention rate of 85% means that the business was able to keep 85% of its employees over a specified period of time. Retention rates vary widely based on the type of business and the strategies it uses. Apart from you have mention for the benefits of positive retention I would say job satisfaction , job morale, turnover cost will be another benefits.
ReplyDeleteYes in other words we can measure the organization success with its percentage of employee turnover, leaders plays a major role in employee motivation. Highly performing work environments are continually at a high level of motivation. According to Matt Tennay (nd) Compared with people at low-trust companies, people at high-trust companies are experience 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, and 40% less burnout.
ReplyDeleteTrust towards the organization will increase based on the motivation of their employees.
Employee retention has become a crucial thing, especially in countries like Sri Lanka due to this badly affected economic conditions. Economic challenges may lead to cost-cutting measures, which could impact employee morale and job satisfaction, potentially increasing turnover. And also economic downturns may lead to staff reductions and increased workloads for remaining employees, negatively impacting work-life balance and contributing to turnover. Therefore need to adapt strategies effectively is far more important in Today's environment.
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ReplyDeleteIn light of the interconnected aspects of performance, productivity, engagement, culture, and lower employee absenteeism and turnover discussed in the sources (Leapsome Team, No Year; Schooley, 2023), how can organizations strategically leverage employee motivation to not only enhance immediate task efficiency but also cultivate a positive work culture and ultimately reduce turnover? Additionally, how does the positive company reputation attributed to motivated employees contribute to talent acquisition and customer relations, and what role does this play in the overall retention of a satisfied workforce?
ReplyDeleteMotivation comes in two forms: extrinsic and intrinsic. Intangible incentives and rewards are becoming more significant to today's job applicants, even though compensation, an extrinsic motivator, has always played a significant role in retention. (/businessleadershiptoday.com, 2023)
ReplyDeleteYou're absolutely correct! Motivated workers are more likely to be content in their positions and stick with their companies for an extended amount of time. Employees that possess intrinsic drive, which is derived from internal motivators like happiness or hobbies, are more likely to succeed and perform effectively. It is the innate propensity to look for new experiences and challenges, to grow and push oneself, to explore, and to learn. Employers may support workers' feeling of purpose and contentment at work by giving them opportunity to grow their talents and follow their hobbies. This may result in reduced turnover rates, more productivity, and greater work satisfaction. Keep up the good work!!😊
ReplyDeleteMotivation and employee retention is the most important fact for all the employers, in this competitive business environment to achieve the goals that will be mark a massive turning point in many companies well done Jesothan
ReplyDeleteTrue..Motivated employees are more engaged and satisfied, reducing turnover. Simultaneously, organizations prioritizing retention strategies, like professional development, inspire motivation. This symbiotic relationship builds long-term commitment and loyalty.
ReplyDeleteYes great, It explains the crucial connection between motivation and employee retention. Encourage organizations to actively invest in understanding and addressing employee motivators.
ReplyDeleteEvery company wants a motivated set of employees. It makes progression easier for them and the cogwheel of success will turn with no hassle. While no employee/employer relationship is perfect, keeping a team motivated is a difficult task and require leaders to be aware. I agree motivation and employee retention go very much hand-in hand and are critical for a company's positive work culture and success.
ReplyDeleteYour exploration of the relationship between motivation and employee retention is well-structured and informative. It effectively highlights the importance of understanding and addressing both financial and non-financial motivators to enhance job satisfaction and retain employees.
ReplyDeleteSince motivation is what propels an employee's success and is essential to both employee engagement and happiness, it is tied to employee retention. When leaders utilise tactics that increase motivation, their workforces become more committed to their work and show more loyalty to their companies.
ReplyDeleteThe article does a good job of showing the important connection between motivation and keeping employees by giving a comprehensive overview of the things that motivate people and the benefits that come from that for businesses. Adding Herzberg's Two-Factor Theory to the conversation makes it more comprehensive.
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