Finding ways to motivate employees can be a challenging prospect for employers, but it is also a necessary component of any successful business. When employees have an increased sense of motivation, they will often have greater job satisfaction and improved work performance. And, ultimately, when employees are highly productive, the entire organization reaps the rewards.

Job Design
In a 2005 literature review included in the "Journal of Management Development," Pooja Garg and Renu Rastogi of the Indian Institute of Technology examined existing studies to determine the most effective method of increasing employee performance. They found that job design was a crucial motivational factor. When jobs are designed for employees to decrease work-related stress, make the employee feel as if he is doing a meaningful job and that he is responsible for and knowledgeable of the outcomes of his work, the employee will demonstrate increased work performance.

Organizational Identification
Daan van Knippenberg of the University of Amsterdam conducted a literature review to determine how organizational identification is related to employee motivation and performance. Knippenberg's review, found in a volume of "Applied Psychology" published in 2000, established that it is very important for employees to view themselves as a significant member of their company. When employees consider themselves to be part of the group, they demonstrate higher work motivation and work performance. However, if employees identify themselves solely as part of a subgroup within the work culture (part of the marketing or programming teams, for example) instead of as a part of the entire organization, employee motivation and performance is decreased.

Financial Incentives
Financial incentives are a common motivational tactic used by employers. James L. Perry of Indiana University-Purdue University and his colleagues published in 2006 a literature review of a volume of "Public Administration Review" that, in part, examined the success of financial incentives. They found that the use of alternative pay systems, such as providing employees with stock or other profit-sharing options, are successful motivators and increase employee performance. Performance-based pay systems motivate employees in private sector jobs to increase their performance, but these systems fail to produce the desired results in public sector jobs. The most effective way to utilize financial incentives as motivators to increase performance is to combine them with positive feedback and public recognition for accomplishments.

Goal Setting
James L. Perry and his colleagues also found that setting goals acts as a powerful motivational factor for employees and improves work performance. When employees set goals, primarily those that are challenging and very specific, they feel as if their contributions are important to the company and are thus more likely to strive to meet those goals. Performance increases from goal setting is most likely to occur when meeting a goal is rewarded by monetary means.

Organizational Participation
Employees who participate in their organization's decision-making processes and who feel that they have a voice in the company have a higher job satisfaction. However, James L. Perry and his colleagues determined that organizational participation was not one of the most effective motivational factors for employees. While participation within the organization results in better business decisions and has long-term potential for increasing the organization's performance, employee participation only slightly improves individual work performance.