Management June 12, 2014 Last updated September 18th, 2018 3,994 Reads share

Motivating Employees Without Spending Money

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Although there are various theories for employee motivation, and different ways of motivating staff, it is important to note that the organization must recognize the importance of motivation of its employees.

Motivation is strongly connected with employee engagement and the main cause of good or bad performance and overall operation of the company. It starts from the assumption that if employees are motivated to work, and are satisfied with their work environment, then clients, customers and guests will also be satisfied, and the organization will work successfully.

In countries with a strong economy, when most of the income is achieved in the service sector, and when traditional manufacturing companies tie their customers with quality service that goes with the product, rather than the products available, top service can offer only employees who are truly motivated. Companies around the world have concluded that employee rewarding is of a great importance in all jobs, which will encourage them to improve results.


Many things affect our behavior and our motivation. Some of them are current situation, past experience, rewarding system, management system, good relations, company culture, perceptions, and personal values. Each of us is motivated in different ways at different times. For example:

  • Positive thoughts motivate. Recall of someone who keeps saying that you will succeed, it means a lot.
  • Enjoying the work motivates. If your work is a pleasure, then you’ll be more energetic, not watching the clock, and will dedicate yourself to your work.
  • Success is a great motivator. For example if you do start with enjoyment and achieve success, you will be even more motivated and end the project at full speed.

Often employees are motivated when they have a personal benefit from the job. At the end of the day, we are working for something. The personal benefit is important for everyone, and therefore motivates employees even more. If the vision is not clear, neither can expect employees to be motivated. Clear communication of the situation, expectations, demands of employees are important to motivate employees to reach their peak. Clear vision and sharp focus are motivators. Some employees also want a good organizational structure at work.

How big companies motivate their employees

In times of crisis, certainly every owner should have a concept and a way of its implementation. So Philip Zepter decided to make a huge, incredible and luxurious entertainment c0mplex in Monaco, where the most successful managers and employees from 42 countries were present. It was a very expensive investment, but also worthwhile because to motivate employees to perform their work at the highest level is quite difficult. Philip Zepter kept his employees for years in his companies worldwide with such; constantly organizing parties, as well as giving an award to the best.

The number of companies which have grown from family companies to medium sized enterprises since the achievement of macroeconomic and monetary stability has increased. Before making any decisions in company’s management, there is the big question for the owners and managers of companies about the ways of motivating employees for superior execution of duties.

For a successful operation, each company must find the optimal combination of tangible and intangible assets. To ensure the required quality of employees, it is necessary to offer the required level of salary, but it is only a necessary condition – not sufficient. Additional motivation of employees is achieved with other types of intangible rewards.

For example, a kindergarten near the workplace could be established so employees could bring their children, and during the break able to visit them.

  • organize parties,
  • picnics,
  • have relaxation areas,
  • medical benefits,
  • give a small gift for birthday,
  • discounts in stores,
  • beauty salons
  • and even allowing pets in the workplace.

The best staff could get an official car, have an opportunity for personal improvement and utilization of their skills and abilities to the greatest extent possible through free study, attendance at trainings and seminars.

Example: Motorola

For example, employees of Motorola in Malaysia are so highly motivated, that managers are trying to convey that experience in some Motorola branches in the United States. For new employees Motorola provides two days of instruction in classrooms where they are introduced to quality control, how to use statistical procedures, and how to work together in teams to get ideas to improve quality, and reduce costs. Employees have an average of 48 hours a year training to upgrade their skills. The training is not only improving the skills and abilities of workers, but also improves their confidence and level of expectation.

New employees receive a mentor who is a trained worker, and that helps and encourages. Motorola pays for engineers at the factory to get a master’s degree, and the best workers in manufacturing are selected and sent to a two-year training for technicians.

Workers who win the competitions for quality, receive trophies and other awards. Workers who present at least 100 ideas for annual cost savings and have applied at least 60% of them, become members of the prestigious “100 Club.” Although membership in the club does not bring much tangible reward, recognition itself is a high success for workers.


Employee motivation is highest when as many people as possible in the organization feel that they are treated equally, i.e. their results and accounts are balanced. The best contributors and workers are motivated to continue to contribute at a high level because they get the results that they deserve. Workers understand that if they want to increase their results, they need to increase their effort. Managers of effective organizations, such as the George Fisher and Eastman Kodak realize the importance of equality and motivation for work and are constantly trying to check whether employees feel equally treated.


By providing training, people will get the necessary experience for high levels of performance. Managers at Julius Blum Gmbh, a company that manufactures hinges for doors in Austria, motivate their employees through a four-year program of apprentices through combined classroom work and instructions in the workplace, which virtually cost 5 million dollars a year. Blum has some of the best-trained employees in Austria, and the combination of their training and high expectations with outstanding motivation are providing successful results for the company.


People are motivated to give more for their companies if they believe that their efforts will pay off with that higher level of work performance. For example, if an employee knows that a successful and early completion of the project will bring him a free holiday in Dubai, he will be motivated to complete the project. Also, the manager who finds a sense of achievement and success of managing a large company and cares to meet the goals by the end of the year to get a free vacation with his family in Miami, will be motivated to perform quality work.

Procredit Group, which consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America, and Africa, provides opportunities for career building for its employees. Banks are significantly investing in their employees by offering a variety of opportunities for personal improvement and advancement of numerous internal and external seminars. They have established a local training centre that allows them to conduct numerous trainings and seminars on specialized topics in the field of banking and structured training to enhance managerial and communication skills.

Final Thoughts

The goal of motivating employees without money is to encourage employees to focus and engage in fulfillment of company objectives. Companies are advised to build a system of remuneration for all employees. The goal of any reward system is being a challenge for every employee to be engaged, and carry its work with the best quality.

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Aleksandar Angjelovikj

Aleksandar Angjelovikj

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