Motivation at Work: Understanding Where It Really Comes From, and How It Impacts the Performance of an Organisation

In today’s complex business environment, a highly motivated workforce is universally seen as essential for success. In a shocking statistic, employees without the necessary motivation are estimated to destroy over USD 8tn of business value globally per year.

But do we really understand motivation? Do we know how it develops and its actual potential impact on our organisations?

To find out how much our community currently understands about motivation we held a focus group in partnership with Forty1 experts Kath Goodson, Global Client Development Director, Hillary Brown, Managing Director, and Dr Guy Champniss, Head of Behavioural Science. A small group of eight individuals from the Engage Employee community joined the focus group to share their insights on motivation’s current and future impact on employee engagement within their organisations.

In his definition of the subject, Guy shared that motivation is a non-negotiable for organisations because without it, we don’t do anything. From Forty1’s study of 2,500+ employees in large organisations, they discovered that when employees are motivated, they are:

• Less stressed in the workplace
• Happier in the workplace
• Thinking less frequently about leaving the organisation
• More inclined to contribute more to the workplace outside of their role
• More strongly committed to the organisation
• More confident in the abilities of their team

Expanding on the topic of teamwork, Guy stressed that psychologists have proven that teams work well only when processes in the team are working well, and processes work well only when you believe in the capabilities and potential of your teammates. The symbiosis of a well-functioning business is therefore dependent on motivation.

Intrinsic vs. Extrinsic Motivation

Guy explained that there are two types of motivation: intrinsic, driven by enjoyment or a sense of meaning, and extrinsic, driven by external factors such as self-esteem, social recognition, and monetary compensation.

Balancing intrinsic and extrinsic motivation emerged as a key theme in the discussion. Our experts suggested that while intrinsic motivation fuels long-term employee commitment and passion, extrinsic rewards provide tangible incentives that reinforce desired behaviours and outcomes. Striking a balance between the two allows organisations to cater to diverse employee preferences and needs.

Forty1’s research found that the strongest motivator is self-esteem or identity motivation, which is the sense of self-definition through one's work, as opposed to finances or love for the work itself.

Forty1’s research found that while the 20 to 29 age group had the lowest levels of intrinsic motivation, they placed a high value on the self-esteem they derived from their roles.

The research by Forty1 identified five specific mechanisms that can be quantified to increase motivation within an organisation: effective internal communication, positive manager interactions, investments in learning and development programmes, a consistent and high-quality employee experience, and a clear demonstration of the company's purpose and values.

Leadership and Motivation

Leadership is an excellent promotional tool in creating a motivational work environment. Effective leaders inspire and empower their teams by aligning organisational goals with individual aspirations, providing meaningful feedback, and creating opportunities for growth and recognition. By fostering a culture of trust, transparency, and open communication, leaders can nurture intrinsic motivation while leveraging extrinsic rewards to reinforce desired behaviours and achievements.

Measuring Motivation and Organisational Change

Measuring and understanding motivation levels provides valuable insights into employee engagement. By assessing factors influencing motivation—job satisfaction, career development opportunities, and organisational culture—employers can identify areas for improvement and implement targeted strategies to enhance overall engagement levels.

Our attendees shared that, thanks to the discussion, they now saw the significance of measuring motivation in the workplace, a concept that had not been previously considered within their organisations. Kath and Hillary emphasised how important it is to understand the background and the factors driving engagement before focusing on motivation. Hillary pointed out the need for a holistic approach, involving various departments such as HR, brand, and learning and development, to address the root causes of motivation issues.

The team went on to discuss the value of data insights for identifying organisational levers and quantifying return on investment. Tailored approaches to this measurement are needed across different organisations, with an emphasis on using the data as a point in time to identify areas for improvement during systemic change.

Impact on Organisational Performance

The impact of employee motivation and engagement extends beyond individual performance to organisational success. Highly motivated and engaged teams are more likely to collaborate effectively, innovate, and adapt to changes. These factors then go further, contributing to improved productivity, higher customer satisfaction, and sustainable growth for organisations.

Conversely, companies that neglect employee motivation and engagement may face challenges such as high turnover rates, decreased morale, and difficulty attracting top talent. Recognising the importance of fostering a motivational work environment determines the cultivation of a positive culture that values employee well-being and professional development.

Conclusion: Practical Recommendations

Based on the insights gathered from the Engage Employee and Forty1 focus group, several practical recommendations can help organisations enhance employee motivation and engagement:

Conduct Motivation Assessments: Implementing surveys or assessments to gauge employee motivation levels can provide valuable insights into organisational strengths as well as the areas for improvement.

Promote a Positive Work Culture: Foster a supportive work environment that values teamwork, diversity, inclusion, and work-life balance to enhance employee well-being and satisfaction.

Provide Development Opportunities: Offer training programmes, career advancement opportunities, and mentorship initiatives to empower employees and foster continuous growth and learning.

Recognise and Reward Achievements: Implement fair and transparent reward systems that acknowledge individual and team accomplishments, reinforcing a culture of appreciation and performance excellence.

Understanding the complex interplay between motivation and engagement is essential for building a resilient and high-performing workforce. By prioritising employee well-being, investing in professional development, and aligning organisational goals with individual aspirations, organisations can build a motivated workforce that works together to drive success and sustainable growth.

By applying these insights and recommendations, organisations can cultivate a culture where motivated and engaged employees thrive, contributing to long-term success and competitive advantage in today's dynamic business environment.

To find out more about where workplace motivation comes from and the effects it can have on performance, you can download The Business of Motivation, outlining how Forty1 engaged over 2,600 employees from large organisations across the US and UK in the biggest study of motivation in the workplace to date.