Motivation significantly drives productivity in an organisation. Many people immediately think of money when talking about motivation. While monetary rewards can be effective sometimes, they aren’t enough to get people to work harder.
People need something else to be more productive—being valued and appreciated. Motivating a team is about creating an environment where people feel inspired and aligned with organisational goals. Employees who feel empowered and supported in their roles put their best effort into their work.
A motivated workforce meets expectations and exceeds them, bringing creativity and energy to completing the tasks. That’s why knowing how to motivate your team and what to be careful about is important.
Intrinsic vs. extrinsic motivation
Before discussing the significance of motivation in the workplace, it’s important to understand the different kinds of motivation. Motivation can be intrinsic or extrinsic.
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Intrinsic motivation
This type of motivation comes from within an individual and is driven by personal enjoyment, interest, and a sense of fulfilment derived from the task itself. It’s related to autonomy, self-development, and a sense of purpose.
For example, an employee who finds joy and satisfaction in solving challenging problems or contributing to innovative solutions is intrinsically motivated. The job itself becomes the reward.
Extrinsic motivation
Extrinsic motivation, on the other hand, arises from external factors such as wages, bonuses, promotions, and rewards. Extrinsic motivation is an external incentive to encourage individuals to perform specific tasks. A person would do the job not because it’s satisfying or interesting but because of the reward. Workers expect to get something in return for the work they’ve done.
The relationships between performance and intrinsic reward are more immediate than those between performance and extrinsic reward. As a result, intrinsic rewards play a more significant role in driving our motivation to work effectively. That’s why employers should try to ensure that work environments support intrinsic motivators and not only focus on monetary rewards and bonuses.
Challenges to motivation
Several challenges can hinder the development of motivation in teams. Recognising these challenges is the first step in addressing them effectively.
Boreout
Boreout is a phenomenon that may arise when employees feel unchallenged and bored at work. It is usually caused by uninteresting and monotonous work, which feels unworthy of the time a person spends on it. Office workers might experience boredom as their days seem all the same and their work might not be interesting.
The problem with boreout is that at some point, a person won’t be interested in doing their work at all. Not only can boreout affect a person’s work performance, but it also harms mental health. Workers who experience boreout also struggle with depression and anxiety.
Mismatched expectations
When people’s expectations about a job don’t match reality, employees might feel tricked and lose motivation. Employees feel deceived if a job promises innovation and dynamic but offers routine instead. This results in disengagement and reduced enthusiasm. To avoid that problem, team leads should clearly explain the company's mission to the employees.
Fear of failure
The fear of failure often happens with perfectionists. People with high expectations of their performance fear that the results won’t be as good as they thought. It has very similar symptoms to anxiety, which affects the work even more negatively. It can also be a result of an overly critical work environment. Fear of failure can lead to procrastination and avoidance of challenging tasks. It holds employees back and hinders professional growth.
Creating a motivated work environment
A motivated team begins with a workplace that prioritises employee engagement and well-being. These tips can help increase employees’ motivation and overcome previously discussed challenges.
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Practice employee empowerment
Employee empowerment refers to organisational arrangements that give employees more autonomy. It’s a great way to motivate people, and effectively implementing autonomy in the workplace can lead to remarkable outcomes, including increased profits.
A notable example is Google, which allows employees to dedicate 20% of their time to developing innovative ideas. This initiative has been highly successful, with over half of Google’s top revenue-generating products originating from projects developed during this 20% time. Giving employees opportunities to make decisions and have some impact on what they’re doing improves commitment, productivity, and job satisfaction.
"Trusting and empowering team members to make decisions aligned with the company's values significantly increases job satisfaction and passion in the workplace.
An example of this was when I entrusted part of our technical team with developing the virtual try-on feature for our website, which they delivered with much innovation, leading to noticeable growth in our customer base." - Mark Agnew, CEO & Founder, eyeglasses.com
Foster a shared sense of purpose in a team
An organisation’s shared sense of purpose aligns employees around a common mission and core values. Employees become more motivated and engaged when they understand how their roles contribute to the organisation’s goals.
A McKinsey study showed that purpose is important in the workplace for 82% of employees. Purpose increases employee engagement, which leads to higher commitment and willingness to put more effort into work. Organisations that create work environments wherein individuals believe they’re making valuable contributions enhance the likelihood of achieving desired results.
People are also more likely to stay at the company and even recommend it to others. To avoid any confusion, a clearly defined corporate mission should be communicated consistently to the employees. Regular reminders reinforce the significance of their daily tasks as meaningful contributions.
"One of the most effective strategies I’ve implemented is fostering a sense of shared purpose. I emphasized the importance of every team member's role. This clear connection to the bigger picture encouraged everyone to give their best effort." - C.L. Mike Schmidt, Lawyer, Schmidt & Clark LLP
Show acknowledgement and appreciation
Recognition of employees’ effort and performance is a powerful intrinsic motivator. The study showed that 78% of employees feel motivated when their contributions are acknowledged, contributing to a positive work environment that helps reduce turnover and stress.
Employees who feel appreciated for their hard work are more motivated to maintain good results. Research shows that 69% of employees would even try to exceed their performance if they felt their efforts were better recognised. Appreciation can come in verbal praise or small gestures of gratitude. It should be genuine and specific so employees know their work is valued and noticed.
“I’ve found that recognition plays a massive role in keeping morale high. Whether it’s a public shoutout during a meeting or a simple handwritten note, acknowledging effort builds confidence and loyalty. For example, during a challenging project, I celebrated small wins to keep the energy up, which helped us not only meet but exceed our targets.” - Danny Ray, Founder, PinnacleQuote
Creating work-life balance
Promoting a healthy work-life balance is essential for maintaining long-term motivation. Employees who struggle to balance their professional and personal lives often experience burnout, which decreases productivity and morale.
As an employer, you can offer flexible work hours and remote work options and encourage using vacation days. Those can help employees recharge and return to work with renewed enthusiasm. When individuals feel their well-being is a priority for the organisation, they’re more likely to remain loyal and motivated.
“My most effective strategy was implementing 'Innovation Fridays'. Team members spend 20% of their time pursuing projects they're passionate about, which led to the creation of our most popular feature. Giving the team autonomy to solve problems they care about has reduced turnover and increased product innovation.” - Kevin Shahnazari, Founder & CEO, FinlyWealth
The power of intrinsic motivation
Intrinsic motivation is a foundation for effective performance. When intrinsically motivated employees are more likely to have higher productivity. Additionally, providing autonomy enhances their creativity and leads to new ideas that could generate revenue. Finally, job satisfaction significantly improves, making employees stay longer at a company.
Organisations need to motivate their workers to be flexible, committed, and creative, not just to turn up on time and follow instructions. By developing intrinsic motivation, companies can build a workforce driven and dedicated to long-term success.
"It's important to remember that a motivated team isn't built overnight. It requires consistent efforts, focus on relationships and an authentic commitment to workplace happiness above everything else." - William J Obom, CEO & President, Deerfield Advisors Insurance Agency
About the authors
Darja is a Behavioural Scientist and Customer Success Manager. She holds a Master’s in Social Sciences from the University of Helsinki, specialising in business anthropology and organisational psychology. She is also working on service and product development.
Natalia focuses on creating content that promotes improving work collaboration in organisations. With an interest in human resources and performance optimisation, she enjoys exploring practical approaches to empower teams.
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