Starting a Small Home Business

Motivating Factors in Business

April 28th, 2009 Filed under: Uncategorized — Small Home Business Author

With bills to pay and mouths to feed, many people push themselves to earn enough money to help them live a more comfortable life. The role of money as a motivator is undeniable, especially if you don’t have enough. However, once you earn enough income so your daily necessities are met, can money be used as a further motivator?

That all depends on the individual. Some people will always try to reach for the stars perhaps because they want bigger and better; whether it be a car, house, or vacation. Others have smaller dreams that they can achieve without being overly ambitious.

As an entrepreneur, you have ambitions for your business. It is important that you make the most of your investment both in money and in time. Likewise, it is important that the people who work with you are focused on the same outcomes as you. That is where a well structured reward system comes into play. In addition to pay, bonuses and stock options, a reward system should include recognition for a job well done, such as promotions or other incentives that can be selected to match the particular life-style of the individual person.

The reward system also has to be responsive. People get tired of hearing empty promises, such as “If you do this well I’ll consider a pay raise at the next review.” If you reward appropriate behavior quickly, you will end up getting better results. Employees value career opportunities, personal and professional development, management style and especially – recognition.