Types of Employee Motivation in Small and Medium Companies

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April 10, 2014 by Darko

In practice are known many reasons that contribute to employee motivation to be one of the most important and difficult things for managers of small and medium companies. One reason is that employee motivation is considered as a regulator of direction and contributes to the maintenance of human behavior to achieve a goal.
Managers of small and medium businesses wishing to reach a situation in which, through the process of employee engagement will improve the effectiveness and efficiency of the company and enhance the company’s position in the market in relation to competitors.

Employee Motivation in Small Companies
Motivation of employees in SMEs includes all internal factors that encourage and organize the activities of employees, direct the behavior and determine the time and intensity of activity. Behavior or action that takes the company’s employee can be triggered by certain stimulants or may simply be a consequence of the action.
Employees differ with each other and therefore there are differences in what encourage and motivate them. What motivates employees in one company does not surely mean that will motivate employees in another company. Indeed, understanding the differences in motivation is the most important thing for a successful prediction of individual differences and behaviors that are the result of specific needs, desires, stress, satisfaction, etc…
If employees are similar in some aspects, they probably differ in most characteristics. It relates to their views and opinions regarding the work, remuneration and other factors that affect motivation.

Classification of Motivation Types

In literature, there are several classifications of motivation types. One of these classifications is a division of the factors that encourage motivation on:

  • Internal Factors
  • External factors

Internal employee motivation factors

Internal factors of motivation are expressed through the characteristics of the particular job, the importance of job position for the company as well as work independency, decision-making process, the communication and transfer of information within the company. Internal motivation is induced by positive inner feelings.

External employee motivation factors

External motivation encourages behavior that occurs when through work performed by the employee create an opportunity for gaining recognition and awards. Internal and external motivation contribute to the achievement of specific results so that it can be considered that certain results occur as a result of internal or external motivation.
Motivation factors that contribute to successManagers of small and medium companies apply different motivation techniques in order to achieve a high level of engagement among their employees. According to the results obtained from studies, it can be concluded that techniques used to motivate employees are split on incentives that affect the safety of operation and incentives that influence job satisfaction.
The effect of motivators that affect the safety of operation can be realized only through the process of monitoring the working environment that can be pleasant, positive, negative, or unpleasant. Motivators that influence job satisfaction consists of motivators that influence the work carried out by employees, recognition for the work, payment for work performed, and the conditions under which work is performed.
Successful management of employee motivation in the process of SMEs depends on how the owners have a clear picture and understanding of what encourages employees to positive job performance, how familiar the different dimensions of motivation and the ability to develop their own skills as a manager and leader of the enterprise.
Good, successful managers are those managers who know how to respect the integrity of the company’s employees, their relations of mutual respect and trust, support, a sense of fairness, and personal beliefs to achieve their common goals of the company.

With this article, I start Passion to Engage blog, and I’m really exited about that. From now on, this blog will be the place where I’ll share experience and thoughts on how to make the world a happier place to work and live.

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