How Does Employee Motivation Impact Organizational Performance?

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 organization's performance and, ultimately, its stability. For instance, if an organization's employees are highly motivated and proactive, they will do whatever is necessary to achieve the goals of the organization as well as keep track of industry performance to address any potential challenges. This two-prong approach builds an organization's stability. An organization 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 organization's stability. An unstable organization ultimately underperforms.

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

Word travels fast. Low employee motivation could be due to decreased success of the organization, negative effects from the economy or drastic changes or uncertainty within the organization. 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 organization. A reputation can precede an organization and dictate its future in the industry.

In "Super Motivation," author Dean Spitzer states that 50 percent 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 percent of its expected revenue, is only reaching 50 percent of its clients and has 50 percent 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 organization's performance standards.