Effect of Motivation on Employee Retention

Introduction

Employees are really important for whether a company does well or not. In today's competitive workplaces, keeping employees around is important for reaching the organization's goals. This study wants to look into how much employees wanting to do a good job and the rewards they get influence whether they stay with the company or not.

Motivation is one of the major aspects of any organization and drives human beings to put in extra efforts. Employee motivation is the process of human behavior to achieve the tasks effectively.In any organization, the overall efficiency and effectiveness of employees and the success of the organization is dependent on the motivation level of employees.  Likewise, de-motivated employees do not put effort and into getting a chance to leave the workplace. Similarly, employee turnover is increased in the absence of motivation. Motivation can be intrinsic or extrinsic. The aspect of job that enhances the internal satisfaction of employees is intrinsic motivation which includes appreciation, new work challenges, positive and soft behavior from the employer, and job succession. Whereas, extrinsic motivation can be described as pay, bonus, promotions, job security. The intrinsic motivation is an important aspect to increase the motivation of employees and their intention to stay with the organization. Intrinsic and extrinsic motivation are very important for all employees working in any industry and the banking sector has no exception to it. Management needs to take more attention to motivating employees intrinsically or extrinsically to enhance employee performance and organizational productivity. (Wordpress, 2023)

How to Improve Employee Motivation and Retention

Companies that do certain things can make a workplace where employees feel involved and motivated, which can make them more likely to stay. But not every solution works for every company, and if not handled well, it can actually make employees leave.

Data gathering - To figure out how big the issue is, begin by collecting information. This might mean doing surveys with employees to see how engaged they are, talking to people who are leaving the company to find out why, looking at how many people are leaving, and so on

Flexible work policies -  Lots of office workers had to do their jobs from home because of the pandemic, and now they don't want to go back to the office all the time. Some companies are allowing them to work a mix of days at home and days in the office, and some are even thinking about making the workweek shorter.

Diversity - equity and inclusion. Focusing on diversity and equity , can attract a broader range of employees. But just talking about it without taking real action can cause problems for companies if they don't actually put in the effort to make it a part of how they operate.

Leadership and management training -  Training in leadership helps employees get ready for bigger jobs and helps them reach their career goals. Making sure employees get training in management is important for keeping them interested and motivated.

Culture  -  Research in psychology shows that individuals tend to feel more motivated when they are surrounded by coworkers who are enthusiastic and dedicated. When you begin focusing on boosting employee motivation, you'll likely observe a gradual, positive improvement in the overall atmosphere at work. (Kurt, 2022)

Further apart from the above why it is important to keep employees motivated to stay in their jobs, we can learn from Maslow's famous hierarchy of needs. He came up with the idea that all people have certain needs, which he organized into a pyramid shape. At the bottom are basic needs like food and water. Then comes safety, feeling loved and belonging, feeling good about ourselves, and finally, being the best we can be. (Nero, 2023)

When it comes to keeping employees motivated and making them want to stay, we should pay attention to the top two levels of the pyramid: feeling good about themselves and being the best they can be.

Reference

Wordpress, 2U (2023) The role of motivation in employee retention, Maryville University Online. Available at: https://online.maryville.edu/blog/the-role-of-motivation-in-employee-retention/ (Accessed: 11 April 2024).

 Catherines-Career-Corner/181823665164047?ref=hl (2020) Employee motivation and retention strategies? focus on feedback loops, Catherine’s Career Corner. Available at: https://catherinescareercorner.com/2017/12/13/employee-motivation-and-retention-strategies-focus-on-feedback-loops-not-perks/ (Accessed: 11 April 2024).

          Nero, V. (2023) How employee motivation increases employee retention, Successories Employee Gifts and Awards. Available at: https://www.successories.com/articles/importantance-of-employee-motivation-to-retention (Accessed: 11 April 2024).