How does employee motivation impact organizational performance?

Updated March 23, 2017

Employees are a company's livelihood. How they feel about the work they are doing and the results received from that work directly impact an organisation's performance and, ultimately, its stability. For instance, if an organisation's employees are highly motivated and proactive, they will do whatever is necessary to achieve the goals of the organisation as well as keep track of industry performance to address any potential challenges. This two-prong approach builds an organisation's stability. An organisation whose employees have low motivation is completely vulnerable to both internal and external challenges because its employees are not going the extra mile to maintain the organisation's stability. An unstable organisation ultimately underperforms.

Reduction in Productivity

Lack of motivation equates to less work being accomplished. Productivity does not disappear; it is usually transferred to aspects not related to the organisation's work. Things like personal conversations, Internet surfing or taking longer lunches cost the organisation time and money. Reduced productivity can be detrimental to an organisation's performance and future success.

Negative Changes to Reputation

Word travels fast. Low employee motivation could be due to decreased success of the organisation, negative effects from the economy or drastic changes or uncertainty within the organisation. No matter what the cause, having the reputation of having an unpleasant work environment due to low employee motivation will ultimately impact how existing and potential clients or partners view working with an organisation. A reputation can precede an organisation and dictate its future in the industry.

Planning for Future Trends

In "Super Motivation," author Dean Spitzer states that 50 per cent of employees put just enough effort into their work to keep their job. This means that if only half the employees in a company are working in a full capacity, the company only has 50 per cent of its expected revenue, is only reaching 50 per cent of its clients and has 50 per cent fewer resources for staff, operations and development. Plan for the future by sharing these statistics with staff. Do not point the finger but reinvigorate their interest and motivation. Reconnecting with the reality of the business is often an effective way of improving performance. Be honest and upfront about any steps that will be taken to improve organizational performance as well as any consequences of not meeting the organisation's performance standards.

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About the Author

Shemiah Williams has been writing for various websites since 2009 and also writes for "Parle Magazine." She holds a bachelor's degree in business and technology and a master's degree in clinical psychology. Williams serves as a subject matter expert in many areas of health, relationships and professional development.