The motivating factors that motivate a person to work and that can be used to improve their performance can be classified into two categories: monetary and non-monetary factors.
Monetary factors:
Monetary factors are extrinsic to work, such as the following:
1. Salary or salary:
This is one of the most important motivational factors in an organization. Wages and salaries must be arranged reasonably and paid on time.
2. Bonus:
The bonus is an extra pay above the salary, and acts as an incentive for better performance. It is linked to the profitability and productivity of the organization.
3. Financial Incentives:
The organization provides additional incentives to its employees, such as medical subsidy, travel allowance, housing rent subsidy, heavy work assignment, and educational allowance for children.
4. Promotion (monetary part):
The promotion is associated with an increase in pay, and this motivates the employee to perform better.
5. Participation in benefits:
This is an agreement through which organizations distribute compensation based on an established formula designed around the profitability of the company.
6. Stock Options:
This is a system by which the employee receives preferred shares that results in financial benefits for employees.
Non-monetary factors:
Non-monetary factors are rewards intrinsic to work, such as the following:
1. Status:
An employee is motivated by a better status and designation. Organizations must offer job titles that convey the importance of the position.
2. Appreciation and recognition:
Employees must be appreciated and reasonably compensated for all their achievements and contributions.
3. Work-life balance:
Employees must be in a position to balance the two important segments of their life: work and life. This balance guarantees the quality of work and life. A balanced employee is a motivated employee.
4. Delegation:
Delegation of authority promotes dedication and commitment among employees. Employees are satisfied that their employer has faith in them and this motivates them to perform better.
5. working conditions:
Healthy working conditions, such as adequate ventilation, adequate lighting and adequate sanitation, improve the work performance of employees.
6. Enrichment of work:
This provides employees with more challenging tasks and responsibilities. Employee work becomes more meaningful and satisfying.
7. Safety at work:
This promotes employee engagement and better performance. An employee should not be kept temporarily for a long period.