Motivating employees the right way – How to boost your team's morale

No one supports your company more than motivated employees. That's why in this article, we'll show you how to successfully maintain a high level of engagement in your team.

Motivated, satisfied employees are the most important part of any recruiting strategy. When your employees are committed, your employer brand becomes truly authentic. A good working atmosphere is often visible to outsiders, attracts new talent and strengthens the bond with your current employees. In this article, we'll show you:

• what employee motivation actually means;

• how your company benefits from motivated employees;

• which types of motivation you should know;

• the three major dimensions of motivation where you should take action.

What is employee motivation?

According to the Gabler Business Dictionary, employee motivation includes any:

"influence exerted by leadership or the company on the employee, in order to get them to maintain, further develop, or (fundamentally) change their performance behavior and/or performance results [...]"

As such, it's always about increasing or maintaining your employees' willingness to perform at a high level. Your motivational efforts are successful when your employees consistently perform well or improve, without burning out in the process.

How does your company benefit from motivated employees?

The ways your company benefits from motivated employees are numerous. Increased motivation can lead to:

• improved work performance;

• better innovation capabilities, e.g. through employees constantly and independently optimizing workflows and customer processes;

• fewer absences and sick days;

• fewer workplace accidents;

• fewer mistakes; and

• fewer instances of misconduct at work (ranging from poor manners to theft of company property).

What types of motivation are there?

People are motivated in different ways. There's no single right approach. If you want your employees to be truly engaged, it's best to ensure a healthy mix of the following factors:

Intrinsic motivation

When employees do something out of inner conviction (e.g., because they believe it's morally right or simply find it interesting), this is called intrinsic motivation. Your employees then perform their work for their own sake and are willing to invest time and energy. This has clear advantages: people who approach tasks with intrinsic motivation tend to be more persistent and can handle setbacks better. Intrinsic motivation is one of the strongest and most enduring drivers for humans.

Extrinsic motivation

Extrinsic motivation refers to encouraging others to achieve a certain performance by offering a reward. Its effect often wears off quickly. Rewards and privileges are soon taken for granted. If you rely on extrinsic motivation as an employer, you'll need to regularly provide new incentives to keep your employees engaged. Still, don't underestimate extrinsic rewards (like competitive salaries). For many, they remain a crucial hygiene factor; in other words: if material incentives are missing, talents will quickly look for alternatives.

Task-oriented motivation

In addition to internal and external factors, the nature of the task itself influences motivation. Some people prefer tasks that are clearly structured and manageable. They enjoy working through things systematically. Others are attracted by unknown challenges with uncertain outcomes. In today's work culture, we tend to value the latter more and underestimate the former. As an employer, avoid falling into this trap. Take "routiners" just as seriously as "explorers." Whenever possible, assign tasks according to your employees' motivational profiles.

Context-oriented motivation

Context-oriented motivation relates to the social aspects of work. These include interaction and exchange with colleagues, celebrating successes together, or the sense of contributing to the common good. These factors are not equally important for everyone, but you should ensure that your team always experiences a positive working context.

Dimensions of employee motivation

If you want to increase your employees' motivation, you can focus specifically on the following three dimensions:

Dimension #1: Participation in the company

Participation means giving your employees the opportunity to actively engage in the company. It gives them a sense of autonomy and the feeling that they can make a difference. Through participation, you show them that they are more than just a "cog in the machine." This enhances motivation. Here are two initiatives that can strengthen participation in your company:

Make managers role models

Employees become demotivated when managers lose touch with them, their work, or customers. This is especially true when managers focus on self-promotion and short-term profit maximization (British-American tech journalist Ed Zitron coined the term "business idiot" for this behavior).

On the flip side: when managers act as true role models, they become motivation boosters for your workforce. Here's how to make that happen:

• Let managers do "actual" work. When leaders occasionally work at the call center or checkout counter, they stay aware of company challenges. They can motivate their teams more effectively and foster internal cohesion. The higher the leadership role, the more important these "reality checks" become.

• Ensure that managers actively set an example to uphold values like commitment, teamwork, fairness, and empathy - rather than just claiming to support them or demanding them from others.

• Appoint suitable candidates to leadership roles. Leadership is a service role. Managers should excel at organizing a team and enabling peak performance - like a director who helps actors shine on screen.

Try co-determination

In politics, democracies have proven to be the best form of government. In companies, we usually accept autocratic structures, believing them to be more efficient or effective. But is that really true?

The fact is: companies generally benefit when they give employees more opportunities for co-determination - especially in terms of motivation. Bottom-up feedback sessions and open communication create a climate where employees feel heard and empowered to shape the company. This helps retain and motivate employees.

Dimension #2: Appreciation

Appreciation is a key motivator for many employees. Appreciating your team means actively showing that they matter to you, that you recognize individual achievements - and that you're willing to reward them accordingly. Here are the three most important factors for effective appreciation:

Praise your employees

It may sound obvious, but sometimes people just want to hear that their efforts have been noticed, or that they did something well. That's why you should ensure your employees regularly receive positive feedback. It motivates them to continue putting in effort.

Celebrate successes together

If your company is successful, it's often the result of many small things your employees did right. You should make this collective effort visible. Celebrate with your team - perhaps through a team event where they can forget about work for a day and simply enjoy themselves. This strengthens team cohesion and motivates them to continue giving their best.

Let your appreciation cost you something

Finally, appreciation shouldn't be just words - it should be backed materially. Here, extrinsic motivation takes on a symbolic role. When employees perform well, reward them - e.g., with higher salaries, additional vacation days, or profit sharing. This shows that you recognize their efforts not just with kind words, but are also willing to give something back. It conveys to your employees that you genuinely mean it.

Dimension #3: Invest in your employees

By investing in your employees, you show that the relationship between them and your company isn't just a business transaction ("work for pay"), but that you're creating a framework for their personal development and well-being. Such investments can include:

Physical and mental health

Create health programs that support the physical and mental well-being of your employees. Your options as an employer are broad: offer regular health check-ups or vaccinations, provide a room with fitness equipment, organize group sports like yoga, or offer massages. These help your team recharge and ultimately boost performance.

Work-life balance

Promote your team's work-life balance by establishing a constructive culture around working hours. Above all, avoid a culture of performative productivity where employees compete over who stays in the office the longest. Constant monitoring of work hours also often creates stress and demotivation. Instead, introduce tools like trust-based working hours and flexible home office policies that foster a healthy work environment.

Invest in education and training

Create attractive opportunities for education and training. This way, your employees can develop the skills they want, that they need to continue being successful at their job, and that also benefit your company long term. This shows you're invested in their personal growth. It boosts motivation and helps prevent bore-out. Instead, employees regularly receive new and exciting challenges that keep them engaged - without overwhelming them.

Conclusion

If you want to motivate your employees successfully and sustainably, you have many options. Some may require adjustments or greater efforts from your company at first. Nevertheless, they are worth it - because they increase your team's engagement, strengthen your company culture, and ultimately improve your long-term market success.

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