Being a small business owner or an entrepreneur is a laborious task and it has its highs and lows. Although those downfalls can take a toll on the heart and the mind of the business owner, but staying motivated and determined can help a business owner to stay on the track of success. Motivation helps you to keep your head in the game. If you want to reach a certain goal, start a new business, offer the best services & products to the consumers, or just want to manage the everyday operation, motivated is a must! And this motivation is not merely confined to the business owner; your employees should be motivated as well.

According to research, a significant correlation is found between the employee motivation and his or her productivity. In simpler terms, if small business employees are motivated, they will be more productive. Productive work means more profit. So how can you motivate your employees to be their very best? You can research and try to understand their driving forces. But why would you get into whole researcher mode when you can rely on psychology? Over many decades, behaviorists and humanistic psychologist are sharing theories that can help us understand the mechanics of motivation.

As a small business manager, you can take help from these seven theories to motivate your employees and achieve the goals and run a successful business.

  1. Maslow’s Hierarchy of Needs

The first motivation theory in our list is by Abraham Maslow. Maslow’s Hierarchy of Needs comprises of a five-tier model. He stated that generally people are motivated to achieve certain needs. Further, he categorized those needs in deficiency needs and being needs.

From the bottom of the hierarchy to the top, the following are the five levels of the needs. You can apply these levels in your business and aid your employees in achieving these needs to keep them motivated.

  • Physiological Needs: all the primary needs and basic biological requirements for survival a human being.

How can you help? Provide a fair salary and a good working environment.

  • Safety Needs: protection, law, security, and stability.

How can you help? By offering job security and a safe and secure working environment to your employees.

  • Love and Belongingness Needs: social needs, for example, acceptance, trust, gratification, and love.

How can you help? By allowing your employees to work with friendly peers and managers.

  • Esteem Needs: achievement, recognition, and status.

How can you help? By offering a well-deserving position, recognizing, and accepting the hard work and efforts of your dedicated employees.

  • Self-actualization needs: “to become everything one is capable of becoming”

How can you help? By offering growth opportunities to your employees.

As a small business manager, you can motivate your employees by helping them achieve their needs in the said ways.

  1. Extrinsic and Intrinsic Motivation

Each human being has a different makeup and the driving force or in this case, the motivational force is different from rest. We are certain that every employee at any small business has its personality, making his or her different from the rest. So, identify the driving force of your employees and incentivize them accordingly.

Extrinsic motivation: Employees who are extrinsically motivated usually complete the task at hand or activity and to avoid the adverse consequences or to earn a reward.

In a small business industry, extrinsically motivated employees to work for a paycheck, reward, and recognition from their bosses. So in future, if you want them to reach their potential, you can motivate them by offering extra rewards.

Intrinsic motivation: Employees who are intrinsically motivated work to satisfy personal needs.

If the employees of your small business are intrinsically motivated, they will do everything in their power and best to their potential to help your small business succeed. To them, the motivation comes from the inside, and they think of a challenge as an opportunity to learn.

Deal with your employees by keeping their respective motivational forces in mind.

  1. Two Factor Theory of Motivation

Tow factor theory of motivation by Fredrick Herzberg revolves around motivator needs and hygiene needs. He explored the factors causing job satisfaction and job dissatisfaction. Further, he concluded that the absence of the factors causing job satisfaction didn’t cause job dissatisfaction. Growth, advancement, achievement, advancement, and recognition are the main factors behind job satisfaction. On the other hand, factors such as salary, status, security, supervision, company policies, and working conditions are responsible for job dissatisfaction.

As you a small business manager you must provide opportunities to your employees that can help them grow and be more creative. This can come under motivator needs and this will satisfy your employees. In addition to this, you should offer decent and fair company policies to your employees and a captivating working condition. Keep all the factors in mind while designing a workplace and a company policy.

  1. Equity Theory

Fourth on our list is the Equity theory, this theory explains the psychology behind how giving a raise or promotion to one person can result in the demotivation of the other coworkers. When your employees are well treated, well appreciated and rewarded, they will be motivated to work. The employees desire the reward equivalent to the effort they put in the task. If they think they are not paid well, the motivation level drops!

As their manager, you should be vigilant to appreciate the hard work of your employees.

  1. Goal-Setting Theory of Motivation

Goal-Setting Theory of Motivation by Edwin Locke states that goal setting is directly linked with the performance. By setting a realistic goal for your employees, you can see a significant increase in their productivity and motivation. Set a goal, give them an incentive, and watch your employees work effectively and quickly.

  1. Pygmalion effect or Rosenthal effect

In simpler terms, this is also known as “proving them right.” This theory says that high expectations lead to quick and improved performances. Consider this theory and have a high expectation of your employees. The higher is your expectation of your employees, the harder your employees will work. So keep your expectation high!

  1. Vroom’s Expectancy Theory

He concluded that motivation depended on three factors: Expectancy, Valence, and Instrumentality. The combination of what a business owner expects from his or her employees, the employee’s performance on the given task, and the basic need of that employee lead to the motivation.

So your goal must be to create a healthy environment so that your employees can bring the very best to the table.

These few psychological theories can help you keep your employees motivated and small business growing! For more information and tips and tricks regarding small business employee motivation and healthy company culture, follow us on Facebook and Twitter (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412; we will help you every step of the way.

Small Business Financing News │ Merchant Advisors | blog
7 Psychological Theories To Motivate Your Small Business Employees
7 Psychological Theories To Motivate Your Small Business Employees
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Apply simple psychology in your small business, and know your employees, motivate them, increase productivity & profit, and run a successful business.
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