Motivation (employee stimulation): a tool misused by 99% of companies

The term “motivation” is often used broadly, encompassing both intrinsic motives and external incentives. However, from a theoretical standpoint, it is more accurate to refer to “stimulation” when discussing employer actions aimed at influencing employee behavior.

Most companies think they understand stimulation, but they don’t. The typical approaches of relying solely on a fixed monthly salary and sporadic bonuses are outdated, ineffective and doesn’t address what truly drives people.

These outdated methods are no longer enough to stimulate a person to achieve more than the bare minimum and even lead to employees only trying to avoid being fired rather than genuinely invested in their work.

Fun fact: According to Gallup, engaged teams see about 20% higher productivity. That’s a big number to ignore.

With increasing automation, only highly motivated employees will remain relevant. Automation handles repetitive tasks, but it’s the motivated employees who bring creativity, problem-solving, and adaptability—skills that are difficult to automate and are essential.

Quick tip: Run quarterly pulse surveys—3 to 5 questions—so you can catch low motivation before it spreads. Then act on that data right away.

From my experience, many companies fail because they lack structured incentives that could better align employee goals with company objectives, ultimately stunting growth.

The right way to harness stimulation

The right way to harness stimulation is to be consistent and intentional. Companies must implement structured short-term, mid-term, and long-term incentive programs to maintain consistent motivation and alignment with company goals. Unlike sporadic rewards, structured incentives create a predictable path that keeps employees focused and engaged.

Pro Tip: Keep an open “Improvements Board” where anyone can post an idea for boosting motivation. No manager filtering—just let people speak up and share ideas.

Short-term incentives

Quick wins are essential. This could mean public recognition for completed tasks, small cash bonuses, or even extra PTO for hitting certain milestones. For example, Google uses spot bonuses and public shoutouts to recognise employees who make significant contributions, keeping motivation high and encouraging others to do the same.

Immediate rewards make people feel seen and appreciated, driving them to tackle the next task with even more energy.

Highlight: Share small wins in a weekly “What Went Right?” update. If someone fixes a bug that saves two hours of work for the entire team, give them a quick public shoutout.

Mid-term incentives

Mid-term incentives help bridge the gap between immediate rewards and long-term growth. They provide ongoing motivation and encourage employees to stay engaged beyond short-term wins while working towards bigger career milestones.

Regular promotions or skills-based raises keep employees motivated beyond the day-to-day. These should be based on growth rather than just time-in-role. For example, Salesforce uses a skills-based promotion system where employees are encouraged to acquire certifications and new skills, which directly lead to career advancement opportunities.

Note: This ties into mastery, one of the big three motivators in Self-Determination Theory: autonomy, mastery, connection.

Stimulation through ownership and autonomy

Allowing employees to make strategic decisions encourages a deep sense of purpose and ownership, directly boosting their motivation. Motivation often thrives when we feel in control of our work. Autonomy—the ability to make key decisions—makes employees feel trusted and valued. This sense of ownership is what drives meaningful progress.

Example: Look at Atlassian’s “ShipIt Days,” where employees pick projects they care about. Or Microsoft’s hack weeks, where teams chase new ideas. When people own a project, they pour their hearts into it.

Stimulation through leading with impact

There’s no bigger motivator than seeing how your work matters. Understanding the broader impact of your work—how new solutions transform user interactions and bring significant industry changes—gives it meaning.

For example, when developers at Slack saw how their communication tool improved collaboration for remote teams worldwide, it fueled their drive to continue refining and expanding the product. When you lead small, tight-knit teams with the same vision, you push harder for products that put users at the center.

Research: Harvard Business Review has shown people rank meaningful work higher than even compensation. That’s a massive signal for every manager.

Motivation fueled by constant learning

Continuous learning is especially important in fast-evolving industries like tech, blockchain, and AI. According to LinkedIn’s Workplace Learning Report, 94% of employees say they would stay at a company longer if it invested in their career development.

Involvement in courses, masterclasses, workshops, or even watching a smart employee do their job and learn from it helps keep motivation high. Staying curious and embracing continuous learning is one of the best ways to stay motivated.

Tip: Pair newbies with seasoned pros for quick skill-building sessions. That on-the-spot coaching can boost morale even more than formal programs.

Long-term incentives

Long-term incentives are where most companies screw up. Often, they lack clarity, transparency, or are not meaningful enough to make employees feel genuinely invested, e.g “percentage of perspective”. Many companies also fail to communicate how these incentives align with the company’s success, which results in employees viewing them as unattainable or irrelevant. In worst case scenarios companies just don’t follow through with their obligations.

Stock options, profit-sharing, and leadership opportunities aren’t just nice-to-haves—they’re what retain people in the long haul. Creating pathways to leadership and ownership allows employees to feel like they have a real stake in the company’s success.

Important: Consistency is everything. If you promise a new role or bonus at a certain milestone, follow through. Break that trust once, and motivation drains faster than you can fix it.

Interesting facts and observations

Here are some lesser-known observations and psychological effects that can help you better understand motivation and work organization:

• Ringelmann effect: Individual productivity decreases as group size increases. This happens because participants start relying on the efforts of others. Solution — small teams with clearly defined responsibilities. For example, Amazon uses the “two-pizza rule”: a team should be small enough to be fed with two pizzas.

• Zeigarnik effect: People remember unfinished tasks better than completed ones. Break projects into stages with intermediate goals to keep employees engaged.

• IKEA effect: People tend to overvalue things they’ve created themselves, even if they are not perfect. Involve employees in decision-making processes so they feel ownership of success.

• Parkinson’s law: Work expands to fill the time available for its completion. Set reasonable but firm deadlines to increase productivity.

• Hawthorne effect: People perform better when they know they’re being observed. Attention from management can act as a powerful motivator.

• Curse of knowledge: Experts often forget that others may not share their level of understanding. This hinders effective communication. Explain complex concepts in simple terms.

These facts will help you better understand employee motivation and build more effective processes in your company.

Conclusion, TL;DR

A paycheck alone is boring, just tossing a bonus every now and then isn’t going to cut it as well. What you need is a layered approach:

1. Short-term incentives: Public recognition, small cash bonuses, extra PTO for hitting certain milestones
2. Mid-term incentives: Regular promotions or skills-based raises, funded learning opportunities—sense of ownership, motivation through skill-building
3. Long-term incentives: Stock options, profit-sharing, and leadership opportunities—they’re what retain people in the long haul

Motivation is contagious, but so is demotivation. It’s a tool that can either propel a company forward or hold it back. Leaders play a critical role in setting the tone—motivated leaders inspire their teams, while disengaged leaders can quickly spread demotivation throughout the entire organization.

Keep it real. Don’t toss out empty slogans. Use data, keep communication flowing, and celebrate real progress. Motivation requires active work—like watering a plant before it wilts, not after.

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I would like to extend my heartfelt thanks to Cheegreen for their invaluable assistance in revising, proofreading, and offering insightful comments to improve this article. Your support and expertise have been instrumental in shaping the final version, and I am deeply grateful for your time and effort.