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How to Motivate Employees? The Secret is Psychological Need Satisfaction

How to motivate employees to perform better? You might think the answer lies in rewards or bonuses. However, the secret is much more cost-effective and can boost employee motivation in the long-term. Here’s all you need to know about psychological need satisfaction.

How to motivate employees?

Motivation at work is a tricky thing. Every organisation’s dream is to have motivated employees; employees who are proactive, perform well on their tasks and are committed to the company’s success. You might think that to achieve that, financial incentives and rewards are the answer. Well, not really. Financial incentives and rewards boost extrinsic motivation. When employees are extrinsically motivated, their performance is only tied to the reward they will receive.

What you are looking to foster is intrinsic motivation.

That is when employees are motivated to perform well out of their own will, either because they enjoy it, or because they derive some meaning from their work. Once employees are intrinsically motivated, they perform better and they are also more satisfied with their job. Most importantly, intrinsic motivation does not cost anything. Therefore, the secret to fostering intrinsic motivation is supporting psychological needs.   

3 Basic Psychological Needs 

The key ingredient to a high intrinsic motivation lies in 3 basic psychological needs: 

1. Autonomy

Perhaps the most essential out of the three, autonomy means having the freedom of choice and feel that you have control over your actions. 

2. Competence

Competence lies in employees’ need to grow and develop at work. You might experience it when you have overcome a challenging task at work and feel confident in your skills.  

3. Relatedness.

Nobody likes to feel left out. Relatedness refers to feeling connected to your colleagues. In other words, it is feeling that you belong in your team, or unit. You may also feel it when you receive support and care from your peers.  

What you can do to motivate your employees 

Now that you know the benefits of satisfying psychological needs, let’s talk solutions.  

Autonomy: Give your employees the freedom they need. 

Nobody likes to be shushed. It is a sign of coercion, and lack of autonomy. Instead of pressuring your employees with “you must”, try and switch to “you can”. Thus, encourage your employees to speak out and share their ideas. Offer them the choice to explore their ideas and allow some space for them to make decisions.  

Competence: Provide guidance and feedback.  

Giving employees enough feedback and guidance helps them understand what is going well and what can be improved. Make sure to focus your feedback on their skills (something they can work on), not their personal characteristics (something they cannot change). For example, instead of “You need to be more creative” try “Are you interested in learning more creative skills?” In such a way, your employee can focus on learning and growing.  

Relatedness: It’s all about belonging.   

Feeling an outsider at work can kill your employees’ motivation. Instead, try building a climate based on companionship and peer support. To do that, listen actively to your employees and also try being more empathetic to your colleagues. Want to know how? Check out our articles on leading with empathy and building great relationships to your peers

Organisations that satisfy employee needs are known to benefit from higher performance and  employees being committed  to the company’s success. Moreover, when you satisfy autonomy, competence and relatedness, your employees will have higher intrinsic motivation. This means that employees whose needs are satisfied are more engaged, more creative and proactive. Essentially, satisfying psychological needs means happier employees and better output. 


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This article is based on the following sources and academic articles

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