From hygiene to high performance: Where real employee motivation comes from
Opinion
The factors that prevent employee dissatisfaction differ from those that create genuine motivation. This distinction matters because it shifts the focus from transactions to transformational experiences.
With the tax year-end fast approaching, many organisations, including ours, are entering the familiar cycle of reviewing salaries, bonuses and promotions as part of annual budget planning. It is a natural and important moment to reflect on reward, recognition and how we support our people.
But it also presents a broader leadership opportunity.
While financial reward plays an important role in any organisation, most leaders will recognise that motivation and engagement are influenced by far more than what appears on a payslip.
The real question is not simply how we reward people but how we create an environment where they can do their best work, grow and feel valued.
Research supports this distinction, with global workplace studies from Gallup consistently showing that only around 23% of employees are actively engaged at work, meaning the majority are either disengaged or not fully contributing their potential. Pay alone clearly does not explain motivation levels.
This is not a new idea; more than 60 years ago, psychologist Frederick Herzberg developed the Two Factor Theory of motivation, and it remains highly relevant today.
Herzberg identified that the factors which prevent dissatisfaction are different from those that create genuine motivation.
He described elements such as pay, benefits, company policy and working conditions as hygiene factors. These are foundational; when they are unfair or inadequate, dissatisfaction rises quickly. But when they are appropriate and competitive, they do not automatically create engagement or higher performance. They simply provide stability.
True motivation, Herzberg argued, comes from deeper drivers such as achievement, recognition, responsibility, personal growth and meaningful work. These are the factors that build commitment, energy and discretionary effort over time.
Modern research continues to reinforce his conclusions, with studies consistently showing that factors such as recognition, development opportunities and quality of leadership have a stronger relationship with engagement and retention than compensation once basic pay expectations are met.
For leaders, this distinction matters because it shifts the focus from transactions to transformational experiences.
Confidence and security
Over the past year, I have been reminded that motivation is far more sensitive to leadership behaviour than we sometimes realise. Small shifts in autonomy, recognition, or clarity can dramatically change someone’s engagement. I have noticed how quickly confidence grows when someone feels trusted and supported, and equally how quickly it can dip when those elements are missing, regardless of pay or title.
In modern organisations, particularly those built on creativity, expertise and collaboration, such as those in the Media sector, people want more than financial security. They want to feel trusted, to know they are progressing, to know their contribution matters, and to work in environments where they can succeed.
Recognition is one of the most powerful and often underused levers available to leaders. Not generic praise but specific acknowledgement of effort, progress and impact.
When individuals can see how their work contributes to team or organisational success, motivation strengthens.
Recognition reinforces purpose. Research shows that employees who receive meaningful recognition are significantly more engaged and up to 4x more likely to feel committed to their organisation.
Responsibility is equally important
Autonomy signals trust; when people are given ownership over decisions and outcomes, they typically rise to that responsibility.
Engagement increases because individuals feel they are shaping results rather than simply executing instructions. Conversely, environments that feel overly controlled or risk-averse can limit motivation, even when other conditions are positive.
The importance of autonomy is also reflected in broader motivation research, which identifies autonomy as one of the core psychological drivers of intrinsic motivation alongside competence and connection.
Growth also plays a defining role
Career progression does not always mean promotion or title changes. Development can come through learning new skills, tackling unfamiliar challenges, broadening exposure or stepping out of your comfort zone into stretch opportunities.
What matters is the sense of forward movement. People are energised when they feel they are becoming better at what they do.
Workforce research consistently finds that lack of growth opportunities is one of the most common reasons individuals choose to leave organisations, often ranking alongside or above compensation concerns.
Perhaps most importantly, meaningful work underpins all of this.
Individuals want to understand how their role connects to a bigger picture, whether that is client impact, organisational success or wider contribution.
Purpose is not created through statements on a wall or website, but through consistent leadership behaviour and communication. When people see how their efforts matter, engagement deepens.
There is also a retention dimension to consider, with research consistently showing that people often leave organisations not purely for financial reasons, but for better experiences such as stronger leadership, clearer progression, healthier culture or more engaging work.
Leadership itself plays a critical role, with managers accounting for as much as 70% of the variance in employee engagement.
Organisations that understand this gain an advantage. They build cultures where people contribute discretionary effort rather than minimum compliance.
They retain talent more effectively. They foster innovation because individuals feel safe contributing ideas and taking ownership.
Financial reward remains an important part of the employment relationship; fairness and competitiveness will always matter. But once those foundations are in place, the leadership behaviours experienced every day have a far greater influence on motivation and engagement.
Evidence consistently shows that organisations with highly engaged employees achieve stronger productivity, profitability and retention outcomes than those with low engagement.
Ultimately, sustainable performance comes from whether people feel trusted, supported, challenged and valued.
The non-hygiene factors that truly drive engagement are remarkably consistent, and they sit firmly within leadership influence. When those elements are present, motivation strengthens naturally.
So next time you are reviewing salaries, don’t forget to consider the non-hygiene factors of motivation as part of someone’s package.
- Recognition fuels confidence.
- Responsibility builds ownership.
- Growth creates momentum.
- Purpose provides meaning.
Ultimately, sustainable performance comes from whether people feel trusted, supported, challenged and valued. As leaders, that is the environment we have the greatest power to create and the greatest responsibility to get right.
Lisa Morgan is managing director at Generation Media. Read her new monthly column for The Media Leader on the first Thursday of each month.