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: From:

Mary Groves Randall E. Berkson Ross W. Martin Brandon V. Smith Jordan M. Worley December 13, 2011 Report on Employee Motivation

Date: Subject:

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

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 longterm 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 higherincome 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. Nonfinancial 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 lowerincome 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.

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).
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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 uppermanagement, 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
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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, longterm 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% 30% 20% 10% 0% 18-25 26-33 34-41 42-49 50-57 58-65

Figure 1: Age Distribution of Respondents

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
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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 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
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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 2 3 4 5 6 7 8

Pay Opportunity for promotion Benefits Flexibility Recognition Performance bonus Tuition reimbursement 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: <10 11-20 21-30 <$19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 What is your age range? <17 50-57 18-25 58-65 26-33 34-41 42-49 What is your yearly income? 66-73 >73 What is your status? Single Married Separated Divorced Widowed Please circle the appropriate option What is your sex? Male Female $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 - $249,999 >$250,000 15

How long have you been at your current job? <1 year 5-7 years 31-40 41-50 >50 8-10 years 2-4 years >11 years

How many hours per week do you work on average?

 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) 1 Management shows a genuine interest in motivating employees. 6
Strongly Agree

Strongly Disagree

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

Strongly Agree

3 My company places great emphasis on creativity and innovation.

Strongly Disagree

5 5 5

Strongly Agree

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4 My company offers achievable long-term incentives.

Strongly Disagree

Strongly Agree

5 I am satisfied with the incentives my company offers.

Strongly Disagree

Strongly Agree

6 The possibility of getting a promotion influences my performance.

Strongly Disagree

Strongly Agree

7 Financial incentives motivate me to do my best work.

Strongly Disagree

5 6

Strongly Agree

8 Achieving recognition, credit, and acclaim motivates me to do my best work.

Strongly Disagree

Strongly Agree

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

Strongly Disagree

Strongly Agree

10 Seeing the positive impact my work has on the company and others outside the company motivates me to do my best work. 1 2 3 4 5 6 Strongly Disagree 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 brand 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) (B) (C) (D) Very Likely Likely Unlikely Very Unlikely 17

3 Communication at my company is_____________. (A)

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

(B) (C) (D)

fairly strong and allows me to understand most of what is going on in the company on a daily basis lacking in certain areas and could use some improvement poor and leaves me feeling left out and in-the-dark in many circumstances

4 My boss or immediate supervisor ___________. (A) (B) (C) (D)

talks to me on a daily basis about work and shows a great interest in getting to know me personally talks to me pretty regularly and is generally helpful and friendly talks to me only when necessary or when problems arise 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 my job performance on a _________ basis. (A) daily (B) weekly (C) monthly (D) quarterly (E) Other 6 I feel that my work ____________. (A) is very valuable to the company (B) is necessary but sometimes unrecognized (C) (D) does not contribute as much to the company as I would like it to is completely pointless

7 When employees at my company do a great job on a certain task or project, they are __________________. (A) financially rewarded (B) praised and personally thanked for a job well done (C) (D) Both A and B Neither A nor B

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8 At work, I feel _______________. (A) (B) (C) (D) respected and highly valued appreciated often overlooked under-appreciated and ignored

9 I am ______________ at my current job. (A) (B) (C) (D) Very motivated Somewhat motivated Unmotivated Very unmotivated

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

Appendix B: Data Analysis Tables and Figures

Pearson Correation P-Value Pearson Correation P-Value Pearson Correation P-Value Pearson Correation P-Value Pearson Correation P-Value Pearson Correation P-Value

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

Table 2: Pearson Correlations

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Q1 4.03 4.16

Q2 4.29

Q3 3.74

Q4 3.56 3.72

Q5 3.74

Q6 3.83

Q7 4.53

Q8 4.33

Q9 4.93

Q10 4.87

Management

Company

Financial Recognition Proficiency Impact

Table 3: Part III Results - Rating Averages

Income < $30,000

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

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

Q1 4.20 4.38

Q2 4.25

Q3 3.90

Income > $30,000

Q4 3.90 4.15 Company Q5 4.35

Q6 4.00

Q7 4.15 3 Financial

Q8 4.15 3 Rec.

Q9 4.75 2 Prof.

Q10 5.05 1 Impact

Management

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

Very likely Likely Unlikely Very Unlikely

New Method 10% 48% 37% 5%

Past Successful Method 55% 45% 0% 0%

Table 6: Part IV, Questions 1 & 2

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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. SLIDE 1 Title Page

BODY

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
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SLIDE 5 Non- Financial Incentives A. B. C. D. Pay cannot stand on its own as a sole incentive Gaining proficiency/mastery of job motivates more than financial incentives Seeing positive effects of work helps to motivate Recognition of important completed tasks conveys a sense of importance

SLIDE 6 Recommendations A. B. C. D. E. Competitive wages for Low-Income Sectors More promotions, less outside talent Stronger communication between managers and subordinates More employee recognition 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?

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Appendix D: Power Point Slides

Communication

Communication is key to motivation and appreciation Feedback and gratitude are the most important forms of communication Establish effective feedback channels

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

Income

Long Term Incentives

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

Long term incentives positively affect employee motivation Short term monetary incentives may lead to less innovation Provide achievable opportunities for promotion and long term incentives

Non-Financial Incentives

Recommendations

Pay cannot stand on its own as a sole incentive Gaining proficiency/mastery of job motivates more than financial incentives Seeing positive effects of work helps to motivate

Competitive wages for Low-Income demographic More promotions, less outside talent

Stronger communication between manager and subordinates More employee recognition

Encourage job education and mastery

Recognition of important completed tasks conveys a sense of importance

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QUESTIONS?

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