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Employee motivation - contemporary instruments for your company

Dr. Christopher Hahn
This article was last updated on: 23.03.2023

Motivating your employees is more important than ever in times of a shortage of skilled workers. Top employees of generations Y and Z in particular attach great importance to their working environment. Flexibility and appreciation are important to them. There are various concepts for employee motivation. For a long time, these have not only been financial factors, but rather employee motivation is increased with other things, such as flexible working hours and a pleasant working atmosphere. Read how you can increase employee motivation.

What does employee motivation mean?

The word employee motivation describes the state of a person and thus a feeling that accompanies an employee at work. Managers who increase employee motivation have managed to positively influence the attitude of their employees and thus increase work performance at the same time. A distinction is made in employee motivation between:

  • Intrinsic employee motivation: Here, the employee is intrinsically motivated and strives to perform well at work. This motivation is particularly high when the employee enjoys working and recognizes the meaningfulness of his or her work. In addition, he sees his daily tasks as a challenge and can develop personally. Managers and employers should strive to increase intrinsic motivation.
  • Extrinsic employee motivation: In extrinsic employee motivation, motivation is provided by an external stimulus. This can be a salary increase or a positive appraisal, for example. However, negative consequences, such as the threat of termination, can also have a motivating effect, as employees usually work better to prevent this. However, this type of employee motivation only has short-term success. Rather, you should strive to take other measures to motivate employees.

Why is employee motivation important?

With the transformation to a knowledge society, many processes in everyday work have become more complex and multi-layered. Whereas it used to be common practice to clearly assign tasks to a specific person, today work is done in much flatter hierarchies and with flexible working conditions. Work is done by teams and the organization of work is much more flexible. It is therefore obvious that employees also have to make their own decisions much more frequently and take on more responsibility.

Increasing employee motivation is therefore of enormous importance. Due to the dissolving command structures in many professional fields, supervisors and employers must increasingly rely on employee motivation. After all, employees without motivation not only do not enjoy their work, but at the same time can significantly disrupt the flow of work. Thanks to flexible working models, work and leisure time are increasingly merging. At the same time, the time spent in the office is decreasing due to home office and other flexible working models.

Fun and satisfaction at work go hand in hand with high employee motivation. At the same time, companies benefit from motivated employees and are therefore looking for employee motivation measures. Employees who are motivated are more committed than employees who only work strictly according to the rules. In addition, employers lose a lot of money due to demotivated employees. Because employees who have already quit internally cost the company a lot of money.

Employee motivation - 15 methods at a glance

Motivating employees can be quite simple. We have compiled some simple measures for employee motivation for you below.


1. Pleasant working atmosphere
A pleasant working atmosphere is very important for employee motivation. Employees' motivation increases when they feel comfortable in the company. In addition to a suitable workplace, employees must also get along well with each other. Therefore, employee motivation starts at the hiring stage. During the hiring process, make sure that the candidate fits in with the team. But joint activities, such as Christmas parties or team-building measures, are also among important employee motivation ideas. Ergonomic office design, modern equipment, bright rooms and common areas help motivate your employees even without money or monetary rewards.


2. Material employee motivation through employee participation
Studies show that employee participation pays off for both sides. Employee productivity increases through participation in the company, which is why many companies use such participation models and offer them as a supplement to salary. At the same time, you benefit from easier recruitment of new staff. After all, qualified employees are difficult to find. To attract young talent to your company, you need powerful arguments. That's why employee stock ownership plans are also considered employee motivation models.

3. recognition and praise
Recognition and praise are among the key measures used by managers to motivate employees. If an employee has performed well, you should tell him or her so. Through this appreciation, you can increase employee motivation. However, it is also true that too much praise has the opposite effect, so you should only use praise in a targeted manner.


4. Further training and seminar for employee motivation
Further training and seminars are important motivation tools for employees. By giving employees the chance to gain qualifications and further training, you ensure that they are motivated. Because employees who have the feeling that they are not getting anywhere personally and are always treading the same ground quickly change jobs. Therefore, make sure you offer continuing education opportunities that are tailored to the skills and abilities of your employees. These can be courses, conferences or internal training. You will benefit twice from these further training measures, because the know-how in your company will be expanded at the same time.


5. Clear employee communication and feedback
Feedback and clear communication with employees is important. Employee displeasure and even mistakes often result from a lack of communication. Therefore, communicate your own expectations clearly when assigning new tasks or for new projects. Even if mistakes occur, constructive feedback is essential. Make it clear to your employees that they can learn from mistakes and that mistakes are common and allowed. How you handle mistakes has a major impact on employee motivation. After all, when it comes to daring projects, a positive feedback culture promotes the commitment of your employees.

6 Flexible working hours
Flexible working is becoming increasingly important for employees. Rigid working hours in the office are no longer the norm. A home office accommodates the desire to have more time for one's children or to pursue one's hobbies. This allows your employees to better balance their private lives and work, making the hours they work more productive.


7. Agree on goals
Agreeing on goals is also a good motivational method that spurs your employees on to top performance. Work out goals with your employees and set benefits and attention when they are reached. This way, your employees can pursue a goal that is not too far away. At the same time, employee motivation is increased.


8. Clarify the meaning of work
Your employees should understand what contribution they make to the company through their own work. By helping your employees understand the meaning of their work for the company, you can increase employee motivation.


9. Amenities such as drinks, snacks and sports
Provide your employees with free drinks and snacks. In this way, you show your employees that you are interested in their well-being and express your appreciation. Other alternatives to boost employee motivation are subsidies for lunch or gym fees.


10. Modern leadership
Authoritarian leadership is no longer in keeping with the times and has a negative impact on staff motivation. Be more responsive to your employees and involve them in important decision-making processes.


11. Financial compensation

In the meantime, studies have shown that intangible employee motivation can be more rewarding than the salary itself. Nevertheless, at the same time, fair compensation also shows your appreciation to your workforce. Reward exceptional performance with salary increases or bonuses. Keep in mind that financial incentives usually only work in the short term.


12. Trust and responsibility

To keep your employees motivated, you should give them responsibility and trust them. Through independent projects, your workforce can prove their expertise and you increase their self-esteem at the same time.


13. Motivated attitude of managers
You can boost the efficiency and morale of your employees by having your managers display a motivated attitude and set a good example. Even when there are problems and things don't run smoothly, managers should project a positive attitude to the outside world.


14. Celebrate successes
Celebrate completed projects together as a team when an important milestone has been reached. This will motivate you for the next project and strengthen team cohesion at the same time.


15. Encourage development

Employees who develop their skills and expand their expertise approach their work with more motivation. Other useful internal employee motivation measures include job enrichment and job rotations.

Disclaimer: The contents of the information offered at esop-direkt.de do not constitute legal advice. If you require a legal review of your individual case, please contact our specialized team: beratung@esop-direkt.de

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Dr. Christopher Hahn
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Your expert for employee benefits
Questions? Talk to our expert!
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Dr. Christopher Hahn
Lawyer & Author
Your expert for employee benefits
Questions? Talk to our expert!
FREE CONSULTATION
Dr. Christopher Hahn
Lawyer & Author
Your expert for employee benefits
Questions? Talk to our expert!
Dr. Christopher Hahn
Lawyer & author, your expert on employee benefits
FREE CONSULTATION
ESOP & VSOP
As an employer, you may not form tax provisions in accordance with section 249 (1) sentence 1 HGB and section 6 (1) no. 3a letters a) and e). This is because, according to a landmark decision of the BFH dated March 15, 2017, file no. I R 11/15, classic VSOP agreements are obligations subject to a condition precedent.
Questions? Talk to our expert!
Dr. Christopher Hahn
Lawyer & author, your expert on employee benefits
FREE CONSULTATION
ESOP & VSOP
As an employer, you may not form tax provisions in accordance with section 249 (1) sentence 1 HGB and section 6 (1) no. 3a letters a) and e). This is because, according to a landmark decision of the BFH dated March 15, 2017, file no. I R 11/15, classic VSOP agreements are obligations subject to a condition precedent.
Questions? Talk to our expert!
Dr. Christopher Hahn
Lawyer & author, your expert on employee benefits
FREE CONSULTATION
ESOP & VSOP
As an employer, you may not form tax provisions in accordance with section 249 (1) sentence 1 HGB and section 6 (1) no. 3a letters a) and e). This is because, according to a landmark decision of the BFH dated March 15, 2017, file no. I R 11/15, classic VSOP agreements are obligations subject to a condition precedent.
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