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Business experts disagree on the precise meaning of the term motivation. However, in essence motivation is, about

"The will to work"

Motivation comes from the enjoyment of the work itself and/or from the desire to achieve certain goals e.g. earn more money or achieve promotion.

Why does motivation matter in business?

In short, people's behaviour is determined by what motivates them. The performance of employees is a product of both their abilities (e.g. skills & experience) and motivation. A talented employee who feels de-motivated is unlikely to perform well at work, whereas a motivated employee can often deliver far more than is expected from them!

A well-motivated workforce can provide the following advantages:

Better productivity (amount produced per employee). This can lead to lower unit costs of production and so enable a firm to sell its product at a lower price

Lower levels of absenteeism as the employees are content with their working lives

Lower levels of staff turnover (the number of employees leaving the business). This can lead to lower training and recruitment costs

Improved industrial relations with trade unions

Contented workers give the firm a good reputation as an employer so making it easier to recruit the best workers

Motivated employees are likely to improve product quality or the customer service associated with a product

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