2.1 Motivating Employees

2.1.1 The Importance of a Well-Motivated Workforce

Why people work and what motivation means

Motivation is the reason why employees work hard and effectively for a business.  Why is it so important for a business to have motivated employees?

Motivation improves productivity so motivated workers will work harder and produce more output, and the firm will make more profit as a result.

Labour productivity is output per worker measured by output divided by the number of workers. So if 10 workers pick 4000 oranges the labour productivity is 4000 divided by 10, 400 oranges per person.

Motivated workers will arrive on time, are less likely to be absent from work (also known as absenteeism) and are less likely to leave the business. We can calculate the rate at which workers leave the business by dividing the total number of employees by the number of employees who left in the last year.

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