How to Motivate Employees: 6 Effective Strategies

Feb 28, 2025
6 min read
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Motivation in the workplace isn’t easy to quantify. However, its effects on businesses are. Disengaged employees cost American businesses $1.9 trillion in lost productivity in 2023, while companies with strong engagement outperformed competitors by 202%.
Seeing those metrics is likely all the motivation most employers need to start engaging employees. Here’s how to motivate employees and position them to grow and succeed. 

Why employee motivation matters

Engaged employees are more productive and committed to their work. That translates to higher quality output, better customer service, and a more vibrant, innovative company culture — all outcomes that help organizations thrive and optimize resource usage.
Another major outcome of motivation is reduced employee turnover. For 72% of workers, even a 30% pay bump isn’t enough to make them a company that makes them feel supported and valued. An investment in employee motivation is an investment that nets long-term returns.

What affects employee motivation?

Wondering what motivates employees? Here are some key contributors:
  • Role scope: Employees need to know what’s expected of them. Going beyond that expectation — or taking on a position that requires more work — can trigger burnout and affect motivation. However, a lack of clarity over expectations is just as overwhelming. Make sure teams understand their priorities and have the tools required to achieve them. 
  • Work-life balance. Burnout is one of the biggest obstacles to motivation. Employees need time to recharge to bring their best selves to work. Flexible schedules, generous time-off policies and a culture that respects boundaries can help create balance.
  • Organizational alignment: A disconnect from organizational goals can make employees less interested in their positions, affecting motivation.
  • Overall health and wellness. Physical, mental, financial, and emotional health all influence an employee’s well-being, which is foundational to motivation. Employees are more engaged and productive when they feel supported in each of these areas.
  • Financial wellness. Financial challenges can be a major distraction, causing employees to be less focused or productive. Offering resources like EarnIn’s financial wellness benefit can create a sense of stability that makes employees more engaged and motivated at work.
  • Career growth opportunities. Providing opportunities for professional development, training, and advancement keeps workers engaged and invested in their future with the company.
  • Recognition and reward systems. A simple "thank you" goes a long way, but structured programs that recognize and reward achievements (both big and small) can improve morale and motivation.

6 ways to increase employee motivation

Here are some of the best ways to motivate employees:

1. Offer flexible work arrangements

Every employee has unique needs and circumstances, and offering flexibility helps employers meet people where they’re at. Flexible work hours, compressed workweeks, or the ability to work from home empower employees to manage their time effectively, reducing stress and increasing motivation.

2. Implement wellness programs

Mental and physical wellness gives workers the energy they need to stay engaged. Invest in programs that support well-being, such as gym memberships, mental health resources, and stress management workshops. If employers don’t have the resources to formally offer wellness programs, they can look for other ways to encourage healthy habits, like organizing fitness challenges or providing nutritious snacks.

3. Encourage continuous learning

Investing in employees’ growth doesn’t just motivate them — it gives them new skills that benefit both themselves and the company. 
Provide opportunities for professional development through training programs, mentorship initiatives, and educational stipends. If workers express interest in attending industry conferences or taking online courses, providing support and resources shows that employers care about their growth.

4. Recognize achievements

Implement a system for recognizing and rewarding the most engaged employees. That could mean acknowledging accomplishments publicly, highlighting individual and team successes in company newsletters, or offering personalized rewards that align with employees' interests. Recognition initiatives reward team motivation and help people feel appreciated.

5. Provide financial wellness support

Feeling financially secure helps employees stay focused and engaged at work. Offering wellness benefits and other resources gives employees the tools they need to take control of their finances, improving motivation and productivity at work.
EarnIn includes a suite of financial wellness products, such as Earned Wage Access (EWA). Otherwise known as on-demand pay, this allows employees to access their pay the same day they work (up to $150/day, with a max of $750 per pay period1) for as little as $3.99 per transfer.2 By giving employees greater financial flexibility, EarnIn helps reduce stress and improve financial stability. Best of all, there’s no cost to employers to offer this benefit.

6. Communicate openly

Create a culture of transparency and open dialogue where employees feel comfortable sharing ideas and concerns. Encourage regular feedback sessions, town hall meetings, and one-on-one conversations between managers and employees. Actively listen to employee feedback, and act on it whenever possible.

How to create a culture of motivation

There’s nothing more inspiring than being surrounded by highly motivated people. Here’s how to keep employees motivated at scale:
  • Empower employees with autonomy. Give employees ownership of their work and the freedom to make decisions within their roles. Trust them to manage their own tasks and projects, and provide the resources and support they need to succeed.
  • Promote team collaboration. Encourage teamwork through group projects, social events, and team-building activities. Recognizing and celebrating team accomplishments builds camaraderie and a sense of shared purpose. 

Motivate workforces with EarnIn’s financial wellness benefit

People work primarily to earn money  — it enables them to meet their needs, achieve their goals, and ensure financial security. However, when employees are financially stressed, their focus, motivation, and overall productivity can be impacted. In some cases, inadequate compensation may even force employees to look for opportunities elsewhere. While offering more pay isn’t always feasible — or even the most effective answer — businesses can provide their workforce with financial wellness tools. 
EarnIn offers a suite of financial wellness products that empower employees to take control of their finances. With on-demand pay, employees can access up to $150 per day, with a max of $750 between pay periods1 whenever they need it. Transfers are available in minutes starting at $3.992 or at no cost via ACH in 1-3 business days. Tips are always optional.3 
Beyond on-demand pay, EarnIn provides additional tools to support employees on their financial journey, offering more ways to help them manage their money with confidence. Request a demo today to see how offering EarnIn as an employee benefit can help create a workplace that retains and motivates employees.