Motivation research summary. If you’ve ever clocked out mentally on a Friday afternoon, you know how much your motivation affects your work. Motivation is just as important as how much we’re paid, if not more so, and businesses are always looking for ways to increase it.
So, if you’re an employer or curious job seeker wanting to know how motivation affects the workplace, stay tuned. We’ve gathered all the latest motivation statistics, and according to our extensive research:
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Motivated employees are 87% less likely to resign.
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Motivated employees are 17% more productive.
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Motivated teams increase business profitability by 21%.
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Employees are 4.6x more likely to feel empowered to do their best work when they feel their voices are heard.
For further analysis, we broke down the data in the following ways: How to Motivate Employees | Motivation and Retention | Cost of Demotivation
How to motivate employees
Motivated employees might bring better results, but that information isn’t entirely useful if you don’t know how to motivate your team. Here are some stats that show you exactly how to motivate your employees:
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77.9% of employees say they would work harder if they received more appreciation.
Despite this, 39% of employees feel unappreciated, showing how this simple disconnect between employees and employees can have a devastating effect on productivity.
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Employees are 2.7x more likely to be highly engaged when they believe they’ll be recognized for their contributions.
Highly engaged employees are 21% more productive and are 28% less likely to commit internal theft than those with low engagement. Just these two facts combined show how vital recognition can be.
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83.6% of employees think recognition is a strong motivator.
The majority of employees agree that recognition is a strong motivator in the workplace, making it crucial for employers to take steps to recognize their employees.
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80% of employees believe that well-defined goals and objectives motivate them on the job.
Believe it or not, employers can increase work performance by as much as 20-25% simply by implementing well-defined goals and objectives.
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20% of employees prefer opportunities for advancement over money.
More specifically, employees said they would prefer a title promotion over a 3% raise. That’s equivalent to an employee making $25 per hour and rejecting over $1,000 extra per year in favor of a title promotion.
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37% of employees believe managers and leaders who praise colleagues do good work more often.
And this doesn’t just apply to in-person work, as 64% of employees believe this is even more important in remote work environments.
Motivation and retention
Many employers struggle with high turnover, and motivated employees are more likely to stick around than their unmotivated counterparts. To learn more about how motivation influences retention, here are some relevant facts:
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96% of employees say more empathy would improve employee retention.
Empathy plays a crucial role in employee motivation and retention. 86% of employees believe it improves morale, and 87% think it’s essential for fostering an inclusive work environment.
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30% of employees are currently thinking of quitting jobs for better offers.
While quit rates dropped by 11.54% between July 2022 and July 2023, many Americans still consider leaving their jobs today. Motivation isn’t the only factor, but it is a significant one.
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69% of employees say recognition and rewards would keep them at their jobs.
Recognition and rewards are the second most cited factor in keeping employees at their jobs, behind desiring interesting work (74%).
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66% of employees are motivated to stay at jobs with incentive program(s).
Of these employees, 85% prefer incentive programs that cater to their individual needs, making a personal approach the most effective.
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Motivation reduces employee turnover by 18%.
Motivated employees are less likely to leave them or call out sick, as motivation also reduces absenteeism by 81%.
Cost of demotivation
Demotivation has devastating consequences on employees and businesses. Employees are less likely to stay at their jobs and have lower productivity, which can severely harm a business’s bottom line. Here are some telling insights:
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Unmotivated workforces cost the global economy $8.8 trillion annually.
That’s equivalent to 9% of the global GDP, or more than the entire GDP of Japan and Germany combined (the 3rd and 4th largest economies in the world).
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Demotivated employees have 37% higher rates of absenteeism.
As it turns out, there’s science behind why you wanted to call out at your part-time college job all the time. In all likelihood, you felt demotivated by your job.
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A culture of recognition saves a company of 10,000 employees $16.1 million a year in turnover costs.
As the size of the company goes up, so too does the cost of unmotivated employees. After all, turnover is a considerable expense and can save companies millions when reduced.
Motivation FAQ
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What motivates employees the most?
Recognition is the top motivator for employees, with 37% saying so. In truth, many factors contribute to employee motivation. However, the others among the top three include inspiring work and flexibility/autonomy; both ranked the most important factor by 12% of employees each.
Factors that motivate employees the most
Factor Share of employees ranking it as the most important Recognition 37% Inspiring work 12% Flexibility and autonomy 12% Training and promotion opportunities 10% Increased pay 7% Other 22% -
Why is motivation important at work?
Motivation is important at work for several reasons, from improving productivity to reducing turnover. Here are all of the top reasons why motivation is essential outlined:
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Increases productivity
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Increases profitability
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Improves retention
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Decreases turnover
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Decreases absenteeism
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Who is responsible for employee motivation?
Employers, and more specifically, managers, are responsible for employee motivation. While it is important for employees to have self-motivation, employers play a much more significant role than many of them realize. For instance, many employees become unmotivated when they lack recognition, flexibility, and advancement opportunities, all of which are primarily controlled by their employers.
Conclusion
Motivation is a crucial factor in productivity and retention, with employees making it clear that it plays a role in their workplace decision-making. Motivated employees are 87% less likely to resign, and nearly 78% say they’d work harder with more recognition.
However, many employers are failing to motivate their employees. Unmotivated employees cost the global economy $8.8 trillion annually, with the average 10,000+ employee company losing out on over $16 million per year due to the turnover caused by demotivation.
Employees need to invest more in incentive and recognition programs, flexible schedules, and training and advancement opportunities. Together, these changes can help to motivate employees, reducing turnover and increasing productivity.
References
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Ceridian – Employee engagement vs. employee satisfaction: How are they different?
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Cooleaf – 5 Tips for Running a Successful Employee Recognition Program
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SHRM – Better Pay and Benefits Loom Large in Job Satisfaction
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Forbes – 10 Timely Statistics About The Connection Between Employee Engagement And Wellness
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Flexjobs – Great Resignation: Survey Finds 1 in 3 Are Considering Quitting Their Jobs
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Gallup – Employee Engagement Strategies: Fixing the World’s $8.8 Trillion Problem
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GFoundry – Lack of motivation at work: causes & solutions
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
