Employee

Motivation and its

Most Influential Factors



Prepared for:

Professor Mary Groves
University of Nevada, Reno






Prepared by:

Randall E. Berkson
Ross W. Martin
Brandon V. Smith
Jordan M. Worley







12/13/2012

To: Mary Groves

From: Randall E. Berkson

Ross W. Martin
Brandon V. Smith
Jordan M. Worley

Date: December 13, 2011

Subject: Report on Employee Motivation

Here is the report on employee motivation you requested. It is titled Employee Motivation and
its Most Influential Factors.

This report outlines the methods used in the study to gather data about the various factors that
influence employee motivation and how to better motivate the companys employees in the
future.

Table of Contents
EXECUTIVE SUMMARY ......................................................................................................................................... 1

SECTION I ............................................................................................................................................................. 4

INTRODUCTION INTO THE STUDY ......................................................................................................................... 4

INTRODUCTION .............................................................................................................................................................. 4
STATEMENT OF PROBLEM ................................................................................................................................................ 4
SIGNIFICANCE OF THE STUDY ............................................................................................................................................ 4
SCOPE OF THE STUDY ...................................................................................................................................................... 5
REVIEW OF RELATED LITERATURE ...................................................................................................................................... 5
METHODS OF THE STUDY ................................................................................................................................................. 6

LIMITATIONS OF THE STUDY ................................................................................................................................ 7

SECTION II ............................................................................................................................................................ 8

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS ......................................................................................... 8

INTRODUCTION .............................................................................................................................................................. 8
FINDINGS ..................................................................................................................................................................... 8
DEMOGRAPHIC PROFILE .................................................................................................................................................. 8
COMMUNICATION IN THE WORKPLACE ............................................................................................................................... 9
INCOME OF EMPLOYEES .................................................................................................................................................. 9
LONG-TERM INCENTIVES ............................................................................................................................................... 10
NON-FINANCIAL INCENTIVES .......................................................................................................................................... 11
CONCLUSIONS ............................................................................................................................................................. 12

RECOMMENDATIONS ........................................................................................................................................ 13

WORKS CITED .................................................................................................................................................... 14

APPENDIX A: EMPLOYEE MOTIVATION QUESTIONNAIRE ................................................................................... 15

APPENDIX B: DATA ANALYSIS TABLES AND FIGURES ........................................................................................ 19

APPENDIX C: PRESENTATION OUTLINE ............................................................................................................... 21

APPENDIX D: POWER POINT SLIDES ................................................................................................................... 23

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List of Tables
Table 1: Rankings of Incentives..11
Table 2: Pearson Correlations.19
Table 3: Part III Results - Rating Averages....20
Table 4: Part III Results Rating Averages for Low-Income Employees..20
Table 5: Part III Results Rating Averages for High-Income Employees.20
Table 6: Part IV, Questions 1 & 2...20

List of Figures

Figure 1: Age Distribution of Respondents.....8

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 Executive Summary


Introduction

This study was executed in order to measure the employees current satisfaction of motivational
factors and incentives in the company, as well as to use that information to determine which
factors and incentives could be changed, implemented, or eliminated in order to motivate them to
do their best work in the future.
The study was conducted by issuing a questionnaire to all employees working at the company
headquarters in Reno. The employees that participated were both full-time and part-time, from
all different departments, and have been working at the company for varied periods of time. The
questionnaire was split into four different parts, and the data derived from the questionnaire was
analyzed and presented in this report in four criteria: communication in the workplace, income of
employees, long-term incentives, and non-financial incentives.

Findings
Demographic Profile

The respondents of the questionnaire were 53.33% male and 46.67% female. The company has a
very young workforce, with 75% of the sample respondents being 33 years of age or younger.
According to the questionnaire data, 65% of the respondents make less than $30,000 per year.
Nearly 70% of the employees work 40 hours or less per week, and more that 75% of the
respondents are single.

Communication in the Workplace

According to the study, 48.33% of the employees believe that improvements can be made to the
communication within the company. In regard to employee-manager interactions, 30% of the
respondents believe their manager or boss does not communicate with them enough, although the
study showed a generally positive opinion of the companys managers and their management
styles. The correlation between good communication and high motivation are strong, according
to the Pearson Correlation that was run for the two factors.

Income in the Workplace

The 65% of respondents that make less than $30,000 per year rated Management Support and
Company Emphasis on Incentives and Creativity lower on the 1 (strongly disagree) to 6
(strongly agree) point scale than did the respondents making $30,000 per year or over, by rating
various statements in Part III of the questionnaire comprising the overall Management and

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Company categories. The low-income segment also rated three out of four motivational
factors (gaining proficiency at their job, financial incentives, and achieving recognition, credit,
and acclaim) as more motivating than the high-income segment did.

Long-Term Incentives
When ranking which incentives were most motivating to them, employees in the sample selected
a long-term incentive as their number 2 choice out of a possible 8, which was the opportunity
for promotion at the company. There was a moderate correlation between the existence of long-
term incentives, such as promotion, and the level of motivation an employee had toward their
current job. It was found that short-term incentives may possibly be detrimental to motivation
when 55% of employees noted that when they are presented with a short term project, that they
are very likely to use past methods to complete it instead of innovative new ones.

Non-Financial Incentives
Employees in the sample chose Pay (salary/wage) as their most motivating incentive, with
Benefits, Flexibility, and Recognition placing 3rd, 4th, and 5th, respectively. Flexibility and
Recognition are non-financial incentives that ranked higher than Performance Bonuses and
Tuition Reimbursement, which are financial incentives. However, it was found that Company
Parties and Socials were ranked last (8th) as a motivating incentive. Based on the information
received from Part III of the questionnaire (the rating section), pure financial incentives actually
ranked 3rd-most motivating, behind gaining proficiency and job mastering (1st), as well as seeing
the impact their work has on the company and others (2nd).

Conclusions
Employees at the company want better communication with their immediate managers and the
company as a whole. They want to know how they are doing, what to improve on, and what they
are good at. With 55% of the respondents only somewhat motivated at their current positions
and many believing the quality of communication at the company is insufficient, it is very
rational to believe that an increase in communication quality will lead to an increase in overall
employee motivation.
The research and findings illustrate that competitive wages are a strong motivational factor,
especially for the lower-income demographic of the company. They are less pleased with
management and the company, which helps lead to their comparatively low motivation levels.
They desire a higher income but are often forced to settle for non-financial incentives when their
wishes are not granted. That makes them value these incentives more highly than the higher-
income demographic values them, but that is because they do not have a high income to
motivate them and help them forget about other forms of motivation.

Mastering a job is a strong motivational factor, as are salary and other financial incentives
(bonuses, etc.), but many employees like to seek advancement in the company. These forms of

2

long-term incentives actually provide more productivity from the workers, because they are
actually working toward something instead of just trying to maintain it.

The study showed that short-term financial incentives are not necessarily conducive to
innovation. Short-term incentives motivate employees to do the work the way they have always
done it, and not to try to find a different or more efficient method of completing the job. Non-
financial incentives such as achieving recognition and credit, seeing the impact an employees
work has, mastering a certain position, and flexibility of scheduling can greatly influence
motivation. The extent of their effectiveness in this company is limited, though, which means
the company and the managers need to make a greater effort to incorporate incentives that are
important to and valued by the average employee, such as these.

Recommendations and Benefits of the Study

With the data from the questionnaire collected and analyzed, and with the recommendations
drawn from the findings of the study, the company will be better able to understand what it can
do to motivate its employees more effectively and increase morale in the workplace.
Recommendations to the company based on this study include: raising the wages of the lower-
income employees at the company, promoting more from within the company, encouraging
better and more frequent communication between managers and employees, making sure
employees are receiving significant credit and recognition for their great work, and offering more
opportunities for employees to increase their skill-sets and to master their respective positions. If
there is a greater level of understanding and cohesion between employees and managers, and if
the right types of incentives are added to effectively motivate employees, productivity and
revenues will increase, and the company as a whole will greatly benefit.

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 Employee Motivation and its Most Influencing Factors

Section I

Introduction into the Study

Introduction

Employee motivation, at times, can be an elusive quest for companies and managers due to the
multiplicity of incentives that can influence employees to do their best work. Furthermore,
short-term financial incentives are often seen as mandatory to foster motivation and are generally
viewed very positively by employees in the workplace. However, recent research has indicated
that there are other factors that can significantly influence motivation and lead to innovation.

Statement of the Problem

The purpose of this study was to determine what types of incentives and motivational factors can
more effectively promote innovation and increase employee motivation in the company, as well
as to provide recommendations to management on what to implement, eliminate, or change,
based on our findings.

Significance of the Study

This study benefits two primary groups. The first group it benefits is managers in the company.
With the knowledge of what motivates employees, managers can better determine what drives
employees to do their best work. They can use this information to get more value out of the
people they hire and already employ by using effective motivational strategies other than
monetary incentives. Managers need to know what drives their subordinates and peers in order
to be effective leaders in the work place. The recommendations in this report will enable
managers to get the best performance out of their employees and increase productivity in their
departments. The second group this study benefits is the employees. Employees can use this
information to determine what helps motivate them as well as understand what motivates their

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peers. If there is a greater level of understanding and cohesion between employees and managers,
the company as a whole will prosper.

Scope of the Study

This study was completed using the input of full-time and part-time employees of the company
in all different departments. These employees were surveyed for the purpose of discovering
what is most motivating to them in the workplace. Employee motivation is defined as the
eagerness or drive in an employee that directly influences their level of involvement or
performance in the workplace. Motivating factors and incentives are reasons for employee
motivation, and in order to best evaluate and describe which of these factors are most and least
critical to employees, we have split this study up into the following criteria: communication,
income, long-term incentives, and non-financial incentives. The study was limited to employees
working in the company headquarters in Reno. All employees surveyed live in the Reno-Sparks
metropolitan area (Washoe and Storey counties), Carson City, or Lake Tahoe. The questionnaire
was issued, returned, and analyzed in December of 2011.

Review of Related Literature

Azoulay, Graff-Zivin, Manso (2010), professors at Massachusetts Institute of Technology and

University of California, Santa Barbara, published a paper titled Incentives and Creativity:
Evidence from the Academic Life Sciences indicating that long term rewards rather than short
term rewards helped to motivate scientists in their work and to promote overall greater creativity.
The application of this study suggests that short term rewards, that are common in many
businesses, may truncate motivation and hinder innovation.

Ederer and Mansos (2011) study titled Is Pay for Performance Detrimental to Innovation?
concluded the following: the optimal incentive scheme that motivates exploration is
fundamentally different from standard pay-for-performance schemes used to motivate effort.
Tolerance (or even reward) for early failure, reward for long-term success, excessive
continuation, commitment to a long-term incentive plan, and timely feedback on performance are
all important to motivate exploration. (p. 32)

Grant and Singh (2011), two management professors from The Wharton School of the University
of Pennsylvania, argue that traditional incentive schemes (stock options and bonuses) are often
beneficial for motivating and improving employee performance, but can have serious
repercussions such as unethical behavior, fuel turnover, and foster envy and discontent.
Moreover, they further explain that financial incentives are best used with the following three
guidelines: when tasks are algorithmic in nature and generally uninteresting, when the financial
incentives are small, and they work in conjunction with major initiatives. They also point out
three important elements, based on Daniel Pinks research, that the workplace should incorporate
to raise productivity: autonomy (freedom of choice), mastery (skill & professional development),
and purpose (meaning outside of the immediate work area).

5

Grant and Gino (2010), concluded in their study A Little Thanks Goes a Long Way:
Explaining Why Gratitude Expressions Motivate Prosocial Behavior that gratitude shown in the
workplace can promote prosocial behavior the carries throughout the company. In their
discussion they state, Our findings complement this line of research by demonstrating that
expressions of gratitude, not only experiences of gratitude, have spillover effects on prosocial
behavior. As such, our research suggests that gratitude expressions may have important
theoretical and practical implications for encouraging prosocial behaviors that promote
cooperation (p. 953)

Schoeffler (2005), a contributor to the Insurance Journal, explains that incentives should be in a
three tier incentive scheme: recognition, short-term, and long term. The basic concept is to allow
for incentives that will motivate different personality types. For example, some people enjoy
immediate satisfaction and some enjoy satisfaction that is delayed but has taken time to build up.
Recognition is a key role in motivating which is a non-financial incentive that reflects feedback.

Methods of the Study

Source of Data

The data used in this study were based off of responses to a questionnaire ordered by upper-
management, developed by a team of four researchers, and issued to 60 employees of the
company. The questionnaire was split into four separate parts. Part I consisted of basic
demographical questions that helped to analyze the data based on segments after the
questionnaire was returned. Part II asked respondents to rank eight incentives from 1 to 8 based
on how motivated they were by each incentive. The rankings revealed exactly what incentives
employees valued most, and based on the employees individual rankings, the difference between
what factors they believe are most important to them and which ones are actually most important
to them were deciphered, due to their answers in the other parts of the questionnaire. Part III
asked respondents to rank a series of ten statements from 1 to 6 based on their level of agreement
(strongly disagree to strongly agree). The statements dealt with management styles in the
workplace, incentives offered, employee satisfaction, and various motivating factors. Part IV
included nine multiple choice questions that asked respondents to choose the most appropriate
answer based on their feelings about the effectiveness of communication in the workplace, how
important they are to the company, how important their work is, and how motivated they are at
their current position. A copy of the questionnaire can be found in Appendix A on page 15.

Sample Selection

This study was conducted by issuing a questionnaire to 60 employees working at the company
headquarters in Reno. The employees that participated were both full-time and part-time, from
all different departments, and have been working at the company for varied periods of time. The
questionnaires were distributed to the employees in person by one of the four members of the

6

team conducting the study, and were asked to submit the questionnaire to their respective
department supervisor in a sealed envelope after it was completed. Each department supervisor
then gave the questionnaires back to the research team for data evaluation and analysis.

Statistical Methods

The first part of the questionnaire, collecting simple demographic info, was utilized to determine
how similar or different the different responders were. Though distributed to similar employees,
these key questions can give insight into where somebody is in life and how that might affect
their outlook on their job motivation.

Part II of the questionnaire was a ranking question that was simply analyzed with a Borda Count
method. Pearson Correlations were used to compare certain sections of the survey data in Parts
II-IV. These correlations can be found on Table 2 in Appendix B.

Part III of the questionnaire was a section that asked respondents to rank a series of ten
statements from 1 to 6, with the 1 ranking meaning strongly disagree, and the 6 ranking
meaning strongly agree. For each statement, the most common rankings chosen by the
respondents were calculated, as well as the overall averages for the 60 respondents. To do this,
all of the numerical rankings were summed and then divided by 360, which represented the total
number of points possible (high of 6 for each statement multiplied by the number of respondents
[60]). Then that percentage was multiplied by 6 to get the average ranking for each statement.
After an average ranking was found for each individual statement, the statements were grouped
into different segments, with the first two statements comprising the Management Support
segment, statements 3 through 6 comprising the Company Emphasis on Incentives and
Creativity segments, and 7 through 10 remaining as individual statements about various
motivational factors. The averages were then calculated for each segment and analyzed.

Limitations of the Study

This questionnaire was revised several times before finalization. During those revisions, some
questions and some answer choices were removed in order to make the questionnaire as short as
possible while still providing worthwhile data. The quality of the data collected will still be
sufficient for our study, but perhaps not as specific as a lengthier questionnaire could provide.
Because the questionnaire was distributed to only one place of work, the data is not expected to
reflect an incredibly wide range of perspectives. To apply results to a greater population, a
larger, more random sample would need to be taken.

Section II

Findings, Conclusions, and Recommendations

Introduction

The purpose of this study was to determine what types of incentives and motivational techniques
can most effectively increase employee motivation in the company. 60 questionnaires were
administered to a sample of both full-time and part-time employees at the company.

Findings

The findings of this study are presented in the following criteria: communication, income, long-
term incentives, and non-financial incentives. A demographic profile of our respondents
precedes the four sections on the aforementioned criteria.

Demographic Profile

The respondents of the questionnaire were 53.33% male and 47.67% female, making it a very
balanced study in terms of the respondents sex. Most of the companys employees are younger,
as evidenced by the 58.33% of respondents between the ages of 18 and 25 in the sample. The
second largest age demographic was 26 to 33 at 16.67%, meaning that 75% of the respondents
are 33 years of age or younger (See Figure 1 for a complete age breakdown). 38.33% of the
respondents have an annual income of less than $19,999, and 26.67% make between $20,000 and
$29,999. 5% chose not to respond to the demographical question on income, and the other
31.66% are in one of the other six income segments greater than $30,000. 66.67% of the
respondents work fewer than 40 hours per week, and the other 33.33% work more than 40 hours.
76.67% of the respondents are single, 21.67% are married, and 1.67% are divorced.

70%
60%
50%
40% Figure 1:
30% Age Distribution of
20% Respondents
10%
0%
18-25 26-33 34-41 42-49 50-57 58-65

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Communication in the Workplace

Part IV of the questionnaire asked multiple choice questions regarding employees opinions of
the effectiveness of communication throughout the company and within their respective
departments. When asked directly what they thought about the communication in the company,
48.33% answered that they thought it had problems in certain areas and needed improvement in
order to make them truly satisfied. 38.33% thought it was fairly strong but imperfect, meaning
it could still improve in order to make them feel more like a part of the team. 55% of
respondents claimed to feel only somewhat motivated at their job instead of highly motivated,
and a fairly high correlation was found between good communication in the workplace and high
motivation in employees, after a Pearson Correlation was used to analyze the data gathered from
the returned questionnaires (the full version of the various correlations ran for the study can be
found at Table 2 in Appendix B).

This helps explain, in part, why employees at the company do not feel as motivated as they
believe they could with more effective motivating factors and incentives. Good communication
in the workplace is therefore a strong motivating factor in many cases, because in this study, the
good-but-imperfect overall view of communication effectiveness in the company can be found to
impact employees motivation levels in their respective jobs, which are solid but not as high as
they could be.

In Part III, employees were also asked about how much they felt managers cared about them
personally, and how much effort they felt managers were making to instill a solid level of
motivation in their departments. Overall, respondents feel neutrally-to-positively about the
management styles they are exposed to at work, and they feel that managers do a decent job of
caring about employees and attempting to motivate them. 43.33% claim their manager talks to
them on a regular basis and is helpful, but 26.67% claim their manager only talks to them when it
is necessary or when problems arise. Nearly half of the respondents feel that it is most helpful
and least obtrusive when their boss or manager gives them job feedback or talks to them about
their work on a weekly basis. So if that is not happening, as is indicated by the 30% that feel
their boss isnt communicating with them enough, it can affect their overall motivation level.

Income of Employees

As noted the Demographic Profile, most of the respondents in this study make a relatively low
annual income. 65% of the employees that responded to the questionnaire make less than
$30,000 per year, with 38.33% making less than $20,000. Therefore, analyzing the data based
on lower and higher income demographics (65% lower, 35% higher) was the most interesting
way to conduct the study, because it gave a detailed look at the polarizing views of each segment
due to the questions asked and answered, and it depicts the influence pay can have on every
aspect of an employees satisfaction at work, including their level of motivation.

In the Statistical Methods section in Section I of this report, the method used in analyzing the
data from Part III of the questionnaire gave accurate averages of the rankings respondents gave
to each statement, as well as to the segments (or categories) the statements were later split up
9

into (Table 3; Appendix B). After these figures were found, the averages were calculated for
each statement and category just for the demographic segment of employees making less than
$30,000 per year (Table 4; Appendix B), and also for the demographic segment earning equal to
or more than $30,000 per year (Table 5; Appendix B), and the deviations between the two
samples were quite interesting. In the Management Support category, those with yearly
incomes of under $30,000 ranked management 4.14 out of 6 in regard to how much they feel
management cares about them as individuals, as well has how they much feel management cares
about motivating them to do their best work. The company itself fared slightly worse with its
low-income employees, ranking 3.52 out of 6 in regard to its emphasis on creativity and
innovation, incentives offered, and the achievability of upward mobility in the company. In
contrast, the high-income employees in the sample rated Management Support higher at 4.38
out of 6, and Company Emphasis on Incentives and Creativity higher as well at 4.15 out of 6,
showing a bit of a disconnect between the two different income demographics.

The high-income and low-income demographic segments both rated how greatly certain types of
incentives motivated them to do their best work. The low-income segment rated gaining
proficiency at my job and mastering my position as the most motivating factor to them in the
workplace, followed by seeing the impact my work has on the company and others outside the
company, financial incentives, and then finally achieving recognition, credit, and acclaim.
However, the high-income segment rated seeing the impact as their most motivating factor,
followed be gaining proficiency, and then had the same exact averages for financial
incentives and achieving recognition The low-income segment rated the three factors other
than seeing the impact an average of 0.41 points higher than the high-income segment.

On question 9 of the multiple choice section of the questionnaire (Part IV), the employees
making less than $30,000 per year chose very motivated almost 10% less than the sample of
respondents as a whole. In addition, the percentage of low-income employees who claimed they
are somewhat motivated was higher than that of the sample as a whole, as were the
percentages of low-income employees who are unmotivated or very unmotivated.

Long-Term Incentives

The respondents answered a ranking question in Part II of the questionnaire that asked them what
incentives they found to be most motivating from 1st to 8th place. The respondents indicated the
opportunity for promotion was the second most important motivating factor after salary/wage.
Moreover, there was a moderate correlation between the perception of the existence of
achievable long-term incentives (Section III, Question # 4) and how currently motivated the
respondents were (Section V, Question #9). This would also relate to Mansos (2011) research
in that long-term incentives and job stability fosters motivation and innovation. Opportunity for
promotions would fall under the category of long-term incentives because of the nature of which
they occur (i.e. not quarterly or typically in short time periods).

In Section IV of the survey, questions 1 and 2 dealt with the likelihood of the respondents to
either implement a new method or to use a past successful method to complete a short term
project. The results were quite interesting, because none of the respondents said they would be

10

unlikely or very unlikely to complete a short-term project with past successful methods. Despite
being inconclusive, this indicates that there is a higher probability that short-term projects would
complete in past used methods. Table 5 in Appendix B shows the breakdown of answers from
questions 1 and 2.

Non-Financial Incentives

While this survey did, unsurprisingly, confirm the importance of pay to the average employee, it
is extremely important and worth noting that several other non-financial incentives hold just as
much, if not more significance than pay based on the findings. Additionally, certain other
nonfinancial incentives are markedly poor and not motivating. Table 1 displays the respondents
overall rankings of incentives from 1 to 8.

1 Pay

2 Opportunity for promotion

3 Benefits

4 Flexibility

5 Recognition

6 Performance bonus

7 Tuition reimbursement

8 Company Parties/Socials

Table 1: Rankings of Incentives

Part II of the survey, where respondents ranked the importance of various incentives, did indeed
confirm pays overall importance. Close behind pay was opportunity for promotion, employee
benefits, and job flexibility. Noticeably unpopular was the Company Parties/Socials option.
This data was analyzed on a general level as well as on an age-specific level, but the results were
exactly the same, showing how the level of importance does not seem to change with age.

Part III of the survey, where respondents rated several statements regarding their place of work,
revealed other important information regarding incentives. In this case, based on an overall
rating, purely financial incentives were only rated as third most motivating (Table 3; Appendix
B). Gaining proficiency at their job and mastering their position was rated most motivating to
the employees, followed by seeing the impact their work has on the company and others.

Question 6 of Part IV of the survey showed that respondents were essentially split on their
feelings of work contribution. Approximately half feel their work is valuable to the company,
while the other half feel their work is simply necessary but sometimes unrecognized. Question 7

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shows that approximately half of respondents are praised and personally thanked for a job well
done after doing a great job on a task or project. The other half, in this case, was split, but
mostly noted that they were neither thanked nor financially rewarded for great work on a certain
task or project. Incredibly few respondents were solely given financial rewards. These
responses, when compared to the results of Part III of the survey, seem to convey that
recognition is as much an essential factor regarding motivation as financial incentives.

Conclusions

Communication was found to be a contributing factor in motivating employees, and a company

with effective communication will help make employees feel more involved and appreciated. If
employees have a greater respect for their company and are satisfied with the way information is
relayed to them, they will be more motivated in the workplace and their work will improve as a
result. The amount of communication between managers and employees is very critical, and
overall employee motivation can depend on how much they feel the manager cares about them as
individuals and values their work as well. There is definitely room for improvement in the
quality of communication at the company.

The respondents of the questionnaire in the low-income demographic were less motivated and
were slightly more critical of the quality of communication in the company, management styles,
and the companys effort to offer achievable and worthwhile incentives. They felt more strongly
than the higher-income demographic about the ability of financial incentives, achieving
recognition and credit, and gaining proficiency at their job to motivate them to do their best
work. This is primarily because they earn a lower wage and feel the need to compensate for their
lack of pay by feeling more strongly about and putting more emphasis on the ideas of incentives
and other motivational factors in the workplace, whether they are actually receiving them or not.
By receiving a higher wage, these employees overall motivation levels would increase because
they would no longer be lacking that important motivational factor and having to compensate.

Long-term incentives such as opportunity for promotion, along with other like incentives, are
beneficial in influencing more overall productivity. Also, short-term financial incentives could
give motivation to only do what has been successful in the past and not to be creative.

While employees find their pay to be an undeniably vital aspect of their jobs, it cannot stand on
its own as the sole incentive provided by the company. Though important, financial incentives
were actually found to be less motivating than the employee simply gaining proficiency at their
job, or the employees work having a noticeable effect on the company. Where financial
rewards might be excessive, inappropriate, or unaffordable, being praised or personally thanked
can facilitate the employees desire to have a greater, more meaningful effect on the company.

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 Recommendations

The following recommendations are made to the company based on the findings and conclusions
of this study on employee motivation and its most influencing factors, for the purpose of
enhancing the overall level of employee motivation in the company and increasing work
efficiency.

1. Provide more competitive wages to the low-income segment of the company.

2. Increase the possibility of employee promotion in the company by promoting from within
rather than hiring from the outside.

3. Encourage more frequent communication between managers and their employees, and
implement team-building and communication exercises to help strengthen the
relationship and trust between the two groups.

4. Put effort into ensuring that employees are properly credited and receive recognition for
the good work they do in their respective positions.

5. Offer more opportunities for job advancement and education, in order to allow employees
to completely master their respective positions.

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 Works Cited

Azoulay, P., Graff Zivin, J., & Manso, G. (2011). Incentives and creativity: Evidence from the
academic lifesciences. Rand Journal of Economics, Retrieved from:
http://www.mit.edu/~manso/hhmi.pdf.

Ederer, F., & Manso, G. (2011). Is pay-for-performance detrimental to innovation? Retrieved

from: http://www.mit.edu/~manso/em.pdf.

Grant, A., & Gino, F. (2010). A little thanks goes a long way: Explaining why gratitude
expressions motivate prosocial behavior. A Little Thanks Goes A Long Way: Explaining Why
Gratitude Expresses Pro Social Behavior, 98(6), 953. Retrieved from:
http://www.management.wharton.upenn.edu/grant/GrantGino_JPSP2010.pdf.

Grant, A., & Singh, J. (2011). The problem with financial incentives -- and what to do about
it. Knowledge @ Wharton, Retrieved from:
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2741.

Schoeffler, B. (2005). Employee incentive plans: Make them worthwhile. Insurance Journal,
Retrieved from: http://www.insurancejournal.com/magazines/features/2005/04/18/54614.htm

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 Appendix A: Employee Motivation Questionnaire

Part I: Please circle the appropriate option


What sex?
is your

Male Female


What status?
is your

Single Divorced

Married Widowed
Separated

What is your
age range?
<17 50-57
18-25 58-65
26-33 66-73
34-41 >73
42-49

What is your
yearly income?
<$19,999 $75,000 - $99,999

$20,000 - $29,999 $100,000 - $149,999
$30,000 - $39,999 $150,000 - $199,999

$40,000 - $49,999 $200,000 - $249,999

$50,000 - $74,999 >$250,000

How long have
you been at your current
job?
<1 year 8-10 years
2-4 years >11 years
5-7 years


How many h ours per week do you w ork on average?
<10 31-40
11-20 41-50
21-30 >50


15



By which method do you earn wages?
Hourly Salary Other: __________

Part II: Please rank the following incentives from Most Motivating (1) to Least Motivating (8)

Benefits (stock options/health insurance/401k/vacation or sick pay)

Company socials/parties/celebrations

Opportunity for promotion

Performance-based bonuses

Recognition for good work

Salary/hourly wage

Schedule flexibility

Tuition reimbursement


Part III: Please rate the following statements about your current place of work based on your
level of agreement from 1 (Strongly Disagree) to 6 (Strongly Agree)

shows a genuine interest in motivating employees.
1 Management

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

seems to care
2 Management about employees
professional
on both and personal
levels.

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

3 My company
places great emphasis on creativity and
innovation.

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

4 My company
offers achievable
incentives.
long-term

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

5 I am satisfied
with the incentives

my company
offers.

Strongly Disagree 1 2 3 4 5 6 Strongly Agree




16

 6 The possibility of getting a promotion influences my performance.

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

7 Financial incentives motivate me to do my best work.

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

8 Achieving recognition,

credit, motivates me to do m y best work.
and acclaim

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

9 Gaining proficiency
at my job and mastering my position motivates
m e to do
my best work.

Strongly Disagree 1 2 3 4 5 6 Strongly Agree

10 Seeing the p ositive impact
my work has
on the company

and others outside the company
motivates me to do my best work.

Strongly Disagree 1 2 3 4 5 6 Strongly Agree


Part IV: Please circle the multiple choice answer that best fits your feelings about various aspects
of your current job.

1 When given a short term project, how likely are you to try
out a b rand n ew method
in
order to complete the project?

(A) Very Likely

(B) Likely

(C) Unlikely

(D) Very Unlikely

2 When given a short term project, how likely are you to complete
the project

using
methods that have been successful in the past when used on similar projects?

(A) Very Likely

(B) Likely

(C) Unlikely

(D) Very Unlikely

3 Communication
at my company is_____________.

(A) highly effective and makes me feel like an intregal part of the team

17

 (B) fairly strong and allows me to understand most of what is going on in the
company on a daily basis

(C) lacking in certain areas and could use some improvement

(D) poor and leaves me feeling left out and in-the-dark in many circumstances

4 My boss or immediate supervisor ___________.

(A) talks to me on a daily basis about work and shows a great interest in getting to
know me personally

(B) talks to me pretty regularly and is generally helpful and friendly

(C) talks to me only when necessary or when problems arise

(D) rarely talks to me and shows little interest in getting to know me personally

5 I find it to b e most helpful when my boss gives me feedback
regarding
m y job
performance on a _________ basis.

(A) daily

(B) weekly

(C) monthly

(D) quarterly

(E) Other

6 I feel that m y work ____________.

(A) is very valuable to the company

(B) is necessary but sometimes unrecognized

(C) does not contribute as much to the company as I would like it to

(D) is completely pointless


7 When employees task or project,
at my company do a great job on a certain are
they
__________________.

(A) financially rewarded

(B) praised and personally thanked for a job well done

(C) Both A and B

(D) Neither A nor B


18

 8 At work, I feel _______________.

(A) respected and highly valued

(B) appreciated

(C) often overlooked

(D) under-appreciated and ignored

______________
9 I am at my current job.

(A) Very motivated

(B) Somewhat motivated

(C) Unmotivated

(D) Very unmotivated

Thank you for completing
this E mployee Motivation questionnaire. Your participation
is greatly
appreciated.

Appendix B: Data Analysis Tables and Figures

Correlations
Income & Motivation
Pearson Correation -0.34
P-Value 0.009
Communication & Work Value (Q3&Q6)
Pearson Correation 0.26
P-Value 0.045
Communication & Appreciation (Q3&Q8)
Pearson Correation 0.384
P-Value 0.003
Communication & Motivation (Q3&Q9)
Pearson Correation 0.336
P-Value 0.009
Apprecation & Motivation (Q8&Q9)
Pearson Correation 0.423
P-Value 0.001
Long Term Incentives & Motivation
Pearson Correation -0.395
P-Value 0.002
Table 2: Pearson Correlations

19

 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
4.03 4.29 3.74 3.56 3.74 3.83 4.53 4.33 4.93 4.87
4.16 3.72

Management Company Financial Recognition Proficiency Impact

Table 3: Part III Results - Rating Averages

Income <
$30,000
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
3.96 4.31 3.71 3.39 3.44 3.71 4.74 4.46 5.08 4.85
4.14 3.52 3 4 1 2
Management Company Financial Rec. Prof. Impact

Table 4: Part III Results Rating Averages for Low-Income Employees

Income >
$30,000
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
4.20 4.25 3.90 3.90 4.35 4.00 4.15 4.15 4.75 5.05
4.38 4.15 3 3 2 1
Management Company Financial Rec. Prof. Impact

Table 5: Part III Results Rating Averages for High-Income Employees

Past
New
Successful
Method
Method
Very likely 10% 55%
Likely 48% 45%
Unlikely 37% 0%
Very
5% 0%
Unlikely
Table 6: Part IV, Questions 1 & 2

20

 Appendix C: Presentation Outline

Employee Motivation and its Most Influential Factors

Presenting to Company Executives

Randall E. Berkson, Ross W. Martin, Brandon V. Smith, Jordan M. Worley, 12/13/11

I. OPENING

A. The knowledge of how to motivate employees is the key to success in many companies.
Getting the most productivity from employees and causing innovation helps to breed
success and efficiency.

B. Purpose: To inform executives of the most effective ways to motivate subordinates.

II. BODY

SLIDE 1 Title Page

SLIDE 2 Communication
A. Communication is key to motivation and appreciation
B. Feedback and Gratitude are the most important forms of communication
C. Establish effective feedback channels

SLIDE 3 Income
A. Income has a positive and negative effect on motivation
B. Income earners of $30,000 are usually less motivated
C. Pay competitive to above average wages

SLIDE 4 Long Term Incentives

A. Long Term Incentives Positively Affect Employee Motivation

B. Short Term Monetary Incentives may lead to less innovation
C. Combination of Achievable Opportunities for promotion and Long Term
Incentives

21

 SLIDE 5 Non- Financial Incentives

A. Pay cannot stand on its own as a sole incentive

B. Gaining proficiency/mastery of job motivates more than financial incentives
C. Seeing positive effects of work helps to motivate
D. Recognition of important completed tasks conveys a sense of importance

SLIDE 6 Recommendations

A. Competitive wages for Low-Income Sectors

B. More promotions, less outside talent
C. Stronger communication between managers and subordinates
D. More employee recognition
E. Encourage job education and mastery

III. CONCLUSION

A. Conclusion: Based on the findings in the study, these recommendations will

succeed in motivating employees in a way that will raise productivity and
efficiency. These recommendations will also develop innovation amongst the
work force. An increase in innovation, productivity, and efficiency will only
further the companys success.

SLIDE 7 QUESTIONS

A. Are there any questions?

22

 Appendix D: Power Point Slides

Communication
Communication is key to motivation and
appreciation

Randall E. Berkson, Ross W. Martin, Brandon V. Smith, Jordan W. Worley Feedback and gratitude are the most important
forms of communication

Establish effective feedback channels

Income Long Term Incentives

Income has a positive and negative effect on Long term incentives positively affect employee
motivation motivation

Income earners of $30,000 are usually less Short term monetary incentives may lead to less
motivated innovation

Pay competitive to above average wages Provide achievable opportunities for promotion
and long term incentives

Non-Financial Incentives Recommendations

Pay cannot stand on its own as a sole incentive Competitive wages for Low-Income demographic

Gaining proficiency/mastery of job motivates more More promotions, less outside talent
than financial incentives
Stronger communication between manager and
Seeing positive effects of work helps to motivate subordinates

Recognition of important completed tasks conveys More employee recognition

a sense of importance
Encourage job education and mastery

23

 QUESTIONS?

24