The Importance of Motivation (Edexcel IGCSE Business)

Benefits of a motivated workforce

Spec point — 2.4.1 · The importance of motivation in the workplace: Attracting employees, reduce training costs, productivity, average costs

Benefits of a motivated workforce

• Motivation refers to the inner desire or willingness that drives a person to take action and achieve a specific goal or outcome

• Motivation plays a critical role in business success

  • Motivated employees are more productive and efficient

    • They are likely to be engaged in their work and use their initiative to solve problems
    • They generate higher levels of output and quality
    • Increased productivity results in higher profits for the business

  • Labour turnover rates are often lower when a workforce is well motivated

    • Motivated employees are more likely to stay with the company long-term
    • Lower turnover rates reduce the need for costly recruitment and training

  • The reliability and loyalty of motivated workers are likely to be high

    • Motivated employees take pride in their work, show up on time, meet deadlines and take fewer sick days
    • This leads to increased trust between the business and its employees and encourages a positive organisational culture

Exam Hint The benefits of motivation are an excellent tool to analyse business decisions that affect workers

When comparing two choices, develop a strong argument by considering the impact on workers and then consider how their motivation is likely to be affected - and then link this to benefits to the business