Wetherall & Lippell (2016) What is the Impact of Low Employee Motivation Levels within Organisations JRSBM: 2/1 pp26-48

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What is the Impact of Low Employee Motivation Levels Within

Organisations?

Hayley Wetherall

Shee Lippell

Plymouth Business School, University of Plymouth, UK.

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Abstract

The aim of the research project was to investigate how low employee motivation levels impact organisations,

and to identify strategies that can overcome this. Exploration of previous literature identified gaps, which then

formed the research objectives. The research objectives included identifying and investigating factors that affect

employee motivation levels, the challenges organisations face when employee motivation levels are low, and

what strategies can be put in place to overcome these challenges. The research project adopted a case study

approach focusing on Rund Partnership, an organisation in the construction industry. The primary research

method consisted of 6 semi-structured in-depth interviews with managers of Rund Partnership, who were

selected using snowball sampling. The data concluded non-financial incentives, such as being valued,

recognition, support networks and a stimulating workload, were the most important factors affecting

employees motivation levels. Furthermore, lowering commitment, no interest in workload, increased

absenteeism and turnover, and negative impact on entire workforce were considered to be the most significant

challenges that organisations have to face when employee motivation levels are low. An additional importance

was placed on particular challenges for the construction industry, such as diminishing client relationships,

lowering performance and challenging workloads. The research also found effective strategies for managing

employee motivation levels to include, valuing employee feedback, investing in employees and measuring and

evaluating motivation levels. The research project proves to be valuable to Rund Partnership and other

organisations by providing guidance in managing employee motivation levels so they can achieve optimal

performance levels and further financial benefits.

Keywords

Low Employee Motivation, Case Study, Rund Partnership, Challenges, Strategies.

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Introduction

Motivation is a topic that has been extensively researched since the beginning of the 19th

century (Steers et al,

2004; Ankli and Palliam, 2012; Michael, 2013). Its presence has become increasingly important in organisations,

due to its advantages of enhancing efficiency and financial benefits (Rae et al, 2015; Milne, 2007; Mowday et al,

2013). This is the reason why employee motivation has become such a broad area involving significant amounts

of research and developed theories (Walker et al, 2010; Amah and Ahiauzu, 2013). Therefore, there is scope for

further research, especially when focusing on the management of employee motivation within organisations

(Lin, 2007; Parish et al, 2008). It has been suggested that further research will allow exploration of new ideas

that are relevant to organisations, so they can achieve optimal performance levels (Gagne and Deci, 2005;

Collins and Smith, 2006; Eisele et al, 2013). This stipulates strong justification for undertaking research into the

topic area of employee motivation.

The key themes of this research project are the factors and challenges of low employee motivation levels.

Therefore explicitly providing the research project aim of investigating what impact low employee motivation

Wetherall & Lippell (2016) What is the Impact of Low Employee Motivation Levels within Organisations JRSBM: 2/1 pp26-48

Journal of Research Studies in Business & Management Vol. 2. August 2016

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levels have on organisations. Whilst the focus is put on the challenges of low employee motivation levels, this

will lead onto identification of what strategies organisations currently have in place.

To gain further understanding and gather specific data, this research project focused on one organisation within

the construction industry, Rund Partnership. The organisation acknowledged that employees determine how

successful they are, but had yet to carry out extensive research to identify the motivation levels in the workplace.

In recent months the organisation have recognised the need to observe motivation levels after carrying out a

survey, which identified numerous factors that were affecting employees motivation. Therefore recognising the

need to identify what challenges may arise if motivation levels are low and how to overcome these, making this

research project of value and providing further justification.

This report begins with a literature review, which helped build a rationale for this research project. The research

question, aim and objectives were then established, leading to an explanation of the research methodology

utilised. This report then moves on to uncover the results of the research project, with discussion to relate these

results back to secondary data and previous literature, as well as project limitations. The final section offers a

conclusion, including proposed recommendations for organisations and future research surrounding the concept

of employee motivation.

Literature Review

This section allows the research question to be established by critically reviewing existing literature and

providing justification for this research project. Key topics outlined in this literature review are firstly definitions

of motivation and employee motivation, which are then followed by the consideration of motivational theories

and a further understanding of the concept employee motivation. Secondly, the importance of employee

motivation is reviewed, to identify its purpose within organisations such as Rund Partnership. Thirdly, the

review focuses on low employee motivation levels and the challenges of these for organisations. Finally, the

need for motivational strategies is evaluated, and the elements of such a strategy are discussed.

Employee Motivation

Motivation is defined as the strength and direction of behaviour, and the factors that influence individuals to

behave in a certain way (Armstrong and Taylor, 2014:167). This confirms the assumption that motivation is a

force that makes individuals do things (Pakdel, 2013). Herzberg (1959) originally defined Employee Motivation as employees performing tasks because they want to.

This definition has since been added to stating that Employee Motivation is when employees are mindful that

their behaviour will lead them to achieving rewards, so they behave in a certain way to make sure their needs and

wants are satisfied (Armstrong and Baron, 2009).

With regards to measuring employee motivation, it has been proven difficult to do within some situations

because different factors motivate individuals and these continue to change (Gibbs et al, 2012). This added to

research that highlighted the difficulty of motivating individuals and measuring their level of motivation, and

instead all you can do is focus upon influencing what they do (Bjerke et al, 2007). However Torrington et al

(2014) disagreed by stating that measuring employee motivation is easy to do through concise surveys or

performance management measures that are carried out by organisations (Torrington et al, 2014). Although the

evidence to support this was limited when applying to the entire population, therefore creating the assumption

that this is a simplified perspective of measuring employee motivation (Armstrong and Taylor, 2014).

Motivation is a topic that has been extensively researched in the past and has led to a number of key theories

(Rynes et al, 2005). These included Herzbergs two-factor theory (1959), which is a process theory, and

Maslows hierarchy of needs (1943), which is a content theory, and both lead the recurring justification of setting

goals (Ramlall, 2008; Lunenburg, 2011). Both content and process theories provide an understanding of what

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motivates individuals, with content theories focusing on individual needs, and process theories focusing on the

behaviour (Mullins, 2007).

Maslows theory creates a hierarchy model that demonstrates the motivational needs of an individual, arranged

from their lowest need to the most required need (Koltko-Rivera, 2006). The theory presents different

categories, otherwise known as levels, that display needs that motivate individuals such as; psychological needs,

desires for safety and security, love and belonging, self-esteem and self-achievement (Datta, 2010). The theory

suggests that in order for a person to be fully satisfied and motivated they must satisfy each level of the hierarchy

one by one (Wininger and Norman, 2010). For example employees want to be provided with a safe working

environment, to be valued and gain recognition, and