How to Motivate People and Why Benefits Alone Aren't Enough.

Employee motivation is a psychological process that drives people to act. We distinguish between intrinsic and extrinsic motivation.

Extrinsic motivation is driven by external rewards such as money or popularity. Maintaining extrinsic motivation requires regular external incentives.

Example: Your motivation is extrinsic if you need to learn about motivation to be ready for a lecture, fearing that the lecturer might unexpectedly question you.

Intrinsic motivation is part of human nature, stemming from internal needs like the need to learn, create, and explore. Intrinsic motivation typically lasts longer, and the results of intrinsically motivated work are of higher quality. In our articles, we have written extensively about Herzberg's two-factor theory, especially from the perspective of reducing employee turnover.

Herzberg's Two-Factor Theory

Herzberg developed the two-factor theory in 1959, studying some two hundred office employees. His research aimed to gather information on which business factors contribute to extreme job satisfaction. He was also interested in which business factors lead to an extreme lack of job satisfaction.

The conclusion of the research was that there must be factors that contribute to a certain level of satisfaction, which he called hygiene factors. These factors won't lead to high levels of satisfaction, but if they are absent, they can lead to high levels of dissatisfaction.

In addition to hygiene factors, he concluded that there must also be so-called motivators, which, if present, can cause a great deal of satisfaction. He called these motivational factors. Due to these two factors, the theory was named the two-factor theory. In essence, it is an adaptation of Maslow's Hierarchy of Needs, named after the American psychologist Maslow, who stated that “self-actualized people accept themselves and are capable of dealing with their concerns, as well as recognizing the needs and desires of other people.”

The overlap between Maslow's hierarchy of needs and Herzberg's two-factor theory is shown in the image below.

The basic hygiene factor that must be satisfied is salary, or the level of pay. However, although many will base their argument on "money makes the world go 'round" and thus motivation, this is not entirely true. Or, it may be true for a shorter period, but if we want to build long-term sustainable relationships between us, as employers, and employees – we need to offer something more.

The Reward Mechanism

The human brain uses a complex neural network to process rewards. It is estimated that the human brain has about 100 billion neurons, each connected to 1,000 to 10,000 other neurons. A neuron is the name for a nerve cell, i.e., the anatomical, genetic, functional, and trophic unit of the nervous system, which consists of:

• the cell body (soma) with dendrites on which numerous synapses terminate, bringing signals from previous neurons or receptors
• the axon, the part of the neuron specialized for fast message (signal, impulse) transmission
• synapses, where signals are transmitted to subsequent neurons in the chain via various chemical transmitters

The reward process involves the release of the neurotransmitter dopamine in specific brain areas, including the striatum, ventral tegmental area (VTA), and prefrontal cortex. The release of dopamine in these areas is thought to signal to the brain that a reward has been received, creating a feeling of pleasure or satisfaction.

The concept of the “ventral tegmental area” refers to a cluster of neurons located at the base of the midbrain, or the central area of the brainstem. In Latin, the word “tegmentum” means covering; thus, the name emphasizes the fact that this area forms a layer of neurons covering the midbrain.

When an individual receives a reward, a prediction error is generated, meaning the brain compares the outcome of an event with its expectation. If the outcome is better than expected, the reward system is activated, releasing dopamine and creating a positive feeling associated with well-being.

The Brain as a "Problem"

The (corpus) striatum is a group of brain structures that plays a crucial role in the reward system. It consists of the caudate nucleus (part of the brain forming the basal ganglia) and the putamen, which are located in the front part of the brain and are involved in reward processing, including habit formation and learning new behaviors. The striatum receives input from the ventral tegmental area (VTA), a key structure in the brain's reward system, known as the mesolimbic dopamine pathway. The VTA is responsible for releasing dopamine, a neurotransmitter that signals to the brain that a reward has been received and creates a feeling of pleasure or satisfaction. The striatum receives the dopamine signal from the VTA and processes it, then sends it to other brain areas such as the prefrontal cortex, which is involved in decision-making and regulates dopamine release in response to rewards.

The striatum plays a crucial role in reward-based learning and decision-making. It is responsible for detecting rewards and forming habits, which are learned behaviors that are repeated because they lead to rewards. It also helps regulate the intensity of motivation to seek rewards by controlling the release of dopamine in the brain.

The End of the Road

Motivation based on external rewards or benefits, such as bonuses or promotions, can have an end from a brain function perspective because the brain adapts to rewards over time, and prediction error increases. The brain's reward system, which is responsible for processing rewards and creating feelings of pleasure or satisfaction, can become less sensitive to rewards as they become more familiar or expected.

Specifically, as the brain adapts to a certain type of reward, the striatum will release less dopamine in response to it, making the reward less effective in creating feelings of pleasure or satisfaction. This process is known as habituation or adaptation.

Also, as people achieve their goals, they tend to set new ones, meaning that reward-based motivation can cease as people move on to the next challenge or goal.

Extrinsic Motivation

It's important to note that while extrinsic motivation can be effective in motivating people in the short term, intrinsic motivation tends to be more sustainable in the long term because it is not based on external factors but on one's own values and interests.

It should also be mentioned that the reward system can be influenced by various factors such as genetics, past experiences, and environment. The same reward will not work equally for everyone; some may be more “sensitive” to rewards than others and may require less or more to be motivated.

Before Motivating

After all that has been said, we can conclude that extrinsic motivation, such as a salary increase, bonus, etc., can only and exclusively be a “fire-extinguishing” step.

Before motivating people, one should refer back to Maslow, thus it is necessary:

• To create a sense of community and the opportunity for teamwork. Employees are part of something bigger than themselves. They have a clear understanding of the mission and vision. They know and recognize their role.
• Empowerment. Public praise. Employee recognition programs. Understanding that all individuals contribute to the company's ultimate success.
• Give employees the opportunity to see the bigger picture, to be creative, to have a vision for the future, to practice their creativity, to create new values. Let them be part of the company's success.

Motivation

Generally, motivation can be summarized as several “general strategies”:

• Setting clear and challenging goals, as our employees are often motivated by a sense of purpose and a desire to achieve something. By setting clear, measurable, and challenging goals, you can give people a sense of direction and purpose.
• Providing feedback reduces uncertainty and shows the way forward for what needs to be changed or improved. As we progress, we become more satisfied with what we've done and with ourselves, and thus more motivated.
• Employees are often motivated by a sense of belonging and feeling valued. Creating a positive work environment where employees feel supported and respected can help increase motivation.
• Also, employees can often be motivated by the opportunity to take control of their work, thereby developing new skills.
• The ability to work with others and achieve common goals is a good way to motivate.
• Employee learning and development is one of the best ways to motivate (more on this in the next article).