Employee motivation with tax-free salary allowance

Motivated employees are directly linked to the success of an organization. Motivation is intangible, difficult to measure and extremely difficult to control, but very easy to encourage when done well. It is about purpose, intensity, and persistence.

Motivation in the company is not always at the desired level, but you can take steps to improve it. Simple measures, such as payment of a tax-free wage allowance in kind, often have a big impact on your employees as well as your region. But more about that later.

Encourage employee motivation with employee vouchers

What is employee motivation?

Employee motivation refers to a company's ability to engage its employees to perform at their best and thus achieve the business goals set by the organization.

This motivation at work is key to increasing company productivity and teamwork in the various activities they carry out, in addition to making each member feel fulfilled in their work and identify with the company's values. It is the best way for employees to see themselves as an important part of the company and to do their best to do so.

One of the most productive things HR teams and HR managers can do is create a strong culture that connects and shares the company and employees.

Improving employee motivation is finding more and more followers as an area of development and improvement in companies. Companies are aware of the importance of this factor and the influence of motivation on company results. That's why you should ensure that your employees are motivated to achieve general and specific goals and create an excellent working environment.

Motivation is the most effective way for companies to increase productivity. Employees are a company's most valuable asset; it is they who achieve the company's success with their commitment, dedication and talent.

types of motivation

Intrinsic motivation: It is the motivation that is generated from the person's internal factors, such as the employee's own personal satisfaction. The company has no influence on this type of motivation.

Extrinsic motivation: This is motivation induced by external elements of the employer or organization, such as a salary increase, tax-free in-kind wage allowance, or public recognition. This type of motivation requires the company to act and promote employee motivation using various techniques. More about that in a moment!

The motivation of workers and people in general has been a hot topic for psychology scientists since the 1940s, including by Abraham Maslow and Frederick Herzberg.

Herzberg's theory of motivation

Herzberg's motivation theory, or the two-factor theory, states that there are two factors that an organization can adjust to influence employee motivation. The two factors identified by Herzberg are:

Motivation factors: The presence of motivational factors encourages employees to work harder. They are the factors that can be found in the workplace.

Hygiene factors: If there is no hygiene factor, employees are prevented from doing their best at work. Hygiene factors are the surrounding factors that facilitate employee behavior.

There are 4 levels in which they are measured or divided:

High hygiene and high motivation
This is an ideal situation that any manager or supervisor would like to achieve. All employees here are very motivated and have hardly any complaints.

High hygiene and low motivation
In this situation, employees have very few complaints, but they are not very motivated either. A good example of this situation is that employees get a good salary, but the work is not very interesting. Employees simply cash their checks and only do the bare minimum.

Low hygiene and high motivation
This is a sensitive issue, the employees here are very motivated, but they also have a lot of complaints. A typical example of such a situation is when the work is highly interesting but the remuneration of employees is not in line with the market.

Low hygiene and low motivation
This is obviously a very bad situation. Here, employees are neither motivated nor hygiene factors exist.

How do you apply Herzberg's theory of motivation in practice?

Make sure your managers are mentors too and not just bosses. Every employee should be respected and supported. Organizational culture plays a very important role here.

To increase job satisfaction, ensure that workplaces are well structured and employees find their work meaningful.

Delegate responsibility to your employees so that they feel valued. Respect their individuality, take their comments seriously, and take action where appropriate.

Keep your team up to date. Employees must know where they and the company stand. Tell your employees how you perceive their performance, both quantitatively and qualitatively. Being aware of their performance and added value helps them to face new challenges and gives them autonomy and responsibility.

Make sure that compensation, benefits, and bonuses meet market standards. If you're not rewarding your employees well, why should they be interested in taking initiatives? Take advantage of the option of tax-free payment in kind. Employers can thus transfer benefits in kind and other bonuses to their employees tax-free via the Awiti platform. In this way, employee motivation and satisfaction can be easily increased.

With Awiti, we connect people, companies, organizations and regions with the aim of making them happier and more successful. We would be happy to advise you personally!