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 company’s 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 company’s 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

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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 employee’s
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 Manso’s (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 Pink’s 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).

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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.

 
 

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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 company’s 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 isn’t 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 employee’s 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
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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 Manso’s (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

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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 pay’s 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 company’s 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 employee’s 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 employee’s desire to have a greater, more meaningful effect on the company.

12  
 
 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.

13  
 
 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

14  
 
 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 company’s success.

SLIDE 7 – QUESTIONS

A. Are there any questions?

 
 

 
 

22  
 
 Appendix  D:  Power  Point  Slides  

Communication
ž Communication is key to motivation and
appreciation

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

ž Establish effective feedback channels

Income Long Term Incentives

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

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

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

Non-Financial Incentives Recommendations

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

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

ž Recognition of important completed tasks conveys ž More employee recognition

a sense of importance
ž Encourage job education and mastery

23  
 
 QUESTIONS?

24