Motivating employees

People work for many reasons. Examiners credit financial reasons: to earn a wage or salary, pay for needs and wants, and improve their standard of living. Others are safety, meaning job security, and job satisfaction, such as enjoyment and personal interest.

People also work to meet people and feel part of a group (social), to gain recognition and status, to reach their potential, and to help others or the community.

Motivation means wanting to work harder or faster. A mark scheme describes a bonus as money paid to motivate employees to work harder or faster.

A well-motivated workforce brings clear benefits. The mark scheme credits higher labour productivity: quicker production, increased output and improved efficiency. It also credits lower labour turnover and lower absenteeism.

Other credited benefits are better quality goods and services, fewer mistakes and less waste, workers more willing to accept change, and fewer strikes.

Naming a benefit earns knowledge only. To reach analysis, say why it helps the business.

Low absenteeism means production is not disrupted and no one has to cover for absent colleagues. Low labour turnover means more production and no need to recruit or train new employees, which cuts costs.

Link each benefit to reducing costs or increasing sales. Answer about benefits only when the question asks for benefits.

Maslow's hierarchy sets human needs out in five levels. From the bottom up they are physical, safety, social, esteem and self-actualisation. Physical needs are also called basic needs. Write esteem, not self-esteem.

To use the theory, match what the business does to a level. Pay meets physical needs. Job security meets safety needs. Team building meets social needs. Recognition, such as an ‘employee of the month’ award, meets esteem needs. A chance to reach their potential meets self-actualisation.

Taylor believed that employees are motivated by money. His approach is financial reward by results: the more an employee produces, the more they are paid.

It is likely to work where workers are expected to do tasks they are not paid for. It is harder to use where workers already enjoy their work.

Saying that higher pay motivates is not enough. Give the reason: with pay by results, workers see that harder work earns more.

Herzberg's theory has two groups of factors: motivators and hygiene factors. For motivators, examiners credit recognition and achievement. Praise and promotion are typical ways to give them.

Hygiene factors do not act as motivators. Examiners report wages as a hygiene factor that candidates wrongly call a motivator. Name the factor itself: a way to be hygienic is not a hygiene factor.

Apply the factor to the business. Promoting a doctor links to recognition or achievement. Do not answer with Maslow's levels.

A recommendation question asks which theory a business should use. Taylor says pay by results. Herzberg says use motivators such as recognition and achievement.

Use the facts you are given. A complaint about pay points to Taylor. A complaint that nobody notices good work points to Herzberg. Give each theory's limit too: increasing wages is unlikely to improve motivation in the longer term, so other methods would be needed.

A full answer gives a justified decision. It says why the other theory was rejected, without repeating earlier points. Do not confuse Herzberg with Maslow.

A wage can be paid by time-rate, where an employee is paid for each hour worked, or by piece-rate, where pay depends on output. A salary is a fixed amount of pay for the year.

Piece-rate is likely to increase output, because employees who produce more earn more. Quality may fall as workers rush to gain higher pay.

A pay rise can improve motivation. It also increases costs, so the business must be able to afford it, and wages may only provide a short-term boost.

A bonus is an additional payment above basic pay as a reward for good work, for example for achieving a target. It might create jealousy between employees and may only provide a short-term boost.

Commission is pay linked to the sales an employee makes.

Profit sharing gives employees a share of the profit the business makes. It can help create a team spirit, which can help increase productivity. Profit sharing is not share ownership, and it is not a bonus.

Non-financial methods motivate employees without paying them more.

Job enrichment gives employees additional and more challenging tasks. It is not a promotion. It may require additional training, which increases costs, and some employees may not want the additional tasks.

Job rotation lets employees switch between jobs, so the work is less boring. It does not give extra rest. Workers may need costly training for the other jobs, and productivity may fall or errors rise.

Teamworking puts employees into groups that work together. It meets the wish to feel part of a group, which is one reason why people work. It is also a way to involve employees in decision-making.

Training gives employees new skills and can increase motivation and productivity. It has a cost, and output is lost while the training takes place. Trained employees may also expect higher pay.

Opportunities for promotion motivate staff to work hard to gain a future promotion. Promotion is classed as a non-financial method, so it earns no mark where a question asks for a financial one.

A recommendation is a justified decision: a choice with a reason. Start from the business's problem. Is pay lower than at other firms, is the work boring, or is there no chance of promotion?

Give each method a chain of analysis: what it does for these employees and what it costs this business. Financial methods increase costs and may only give a short-term boost. Job rotation and job enrichment may cost less, but they may need training.

Then say why the other options are less likely to work in this business. A conclusion that only repeats earlier points is not a justified decision.