The Link Between Employees’ Motivation With Organisation’s Performance

Abstract

The financial motivation of the employees, at first sight, is considered the best method of stimulating the work of the employees. However, some studies have shown that employees are also motivated through non-financial means, such as equal treatment or recognition of merits. Although the economic literature offer strategies and analyses related to the motivation’s importance in the success of the organisation, not all managers implement them efficiently. This article presents an analysis of the link between employee motivation and company performance, based on a statistical research conducted on 444 organizations from Romania. The factorial analysis presented is based on the KMO and Bartlett tests and the ANOVA analysis, combining the motivating elements of the employees with the turnover and profitability. The regression analysis of employees' contribution to achieving the organization's performance indicators is underlining the importance of the employees’ motivation in order to achieve the targeted profitability. The conclusions of the paper emphasize the dependence of the performance indicators on the quality of human resources and on the level of their motivation. The motivation dimensions that manages to maximize the organisations’ profitability are those concerned with increasing employee loyalty and increasing working conditions.