Improving employee motivation through the application of Hertzberg’s two factor theory

According to Alrawahi et al., (2020) when one applies Hertzberg’s theory of motivation to explore job satisfaction among employees two types of motivating factors can be found which are,

01. Satisfiers (Motivators) these are the main drivers of satisfaction which include achievement, responsibility, recognition as well as job enhancements. 

02. Dissatisfies (Hygiene factors) are the main reason for job dissatisfaction. Work conditions, salaries, relationships with colleagues, supervisors, and administrative policies are included in this factor.

As these two factors work in different sequences Hertzberg used this model to explain an individual at work can be satisfied and dissatisfied at the same time.

For example, Hygiene factors cannot enhance or reduce satisfaction, but rather can only affect the degree of displeasure. Harmonization of motivational factors needs to be achieved with hygiene factors to attain job satisfaction. According to Hertzberg the only way to increase satisfaction is through the opportunity for advancement and responsibility however when the growth factors are absent dissatisfaction is not caused, but rather an absence of satisfaction (Lundberg, Gudmundson, and Andersson, 2009).  

The two-factor theory has enticed a lot of attention; criticism has been bought forward regarding the difference between motivation and hygiene factors.  To increase motivation job enrichment, enhancement, responsibility, achievement, and recognition is the only way claims the theory (Furnham, Forde, and Ferrari, 1999).  Hygiene factors such as remuneration, interpersonal relationships as well as working conditions may also act as motivators (Pinder, 2008). Individual differences in needs and values have not been taken into consideration when motivation is explained and this has been criticized (Parsons and Broadbridge, 2006).

In employment content according to Hertzberg, there are six factors included for motivation which are achievement, recognition, work itself, responsibility, and advancement and growth possibilities. Whereas company policy, supervision, relationship with superiors as well as peers, work conditions, salary, personal life, and job security are considered hygiene factors (Ruthankoon and Olu Ogunlana, 2003).

Figure 1 (Elastration of Two-Factor theory)

Source: Rishard. L. Draft (2007)

Application of the theory to the organization I work for in the insurance industry

The organization I work for is highly concentrated on motivational factors but lacks the enthusiasm that it has for motivational factors when it comes to hygiene factors. Therefore employees can be considered motivated but dissatisfied with certain matters.

 

Factors that are Motivating (applying the theory to the organization I work for in the insurance industry)

Employees in the underwriting department are governed by a set of key performance indicators (KPI)’s where each employee has a clear set of guidelines given in terms of his or her task to be carried out (quotation/ policy processing timelines). Whereas when the employee accomplishes the task on time accurately it reflects on his or her overall monthly performance and if the employee fails to deliver within the given time frame it also reflects on the employee’s performance indicators. Half-yearly and annual assessments will be done based on these criteria promotions job enhancements/promotions and bonus payouts are linked to KPIs hence the employee is clear on the system and is highly focused on achieving the set KPIs hence which has led to higher organizational productivity. 

Furthermore, the organization came up with a mechanism to maximize in-house talent and make workers more productive, a program was launched as “train the trainer” where a set of key employees were identified and sent through an external training program making them competent trainers and used them as in-house trainers. This approach stands out for a few reasons,

• Leaders and employees became facilitators and trainers instead of outsourcing trainers which made them experts in the process.

• Employee and leader relationship was strengthened due to this in-house approach

This was an initiative that paved way for employees to accelerate in their careers achieving high employee satisfaction.

 

Applying Hygiene factors to the organization I work for in the insurance industry

The organization has good quality work conditions laptops are provided to all employees along with a workstation. Interpersonal relationship building and quality work supervision are present. Annual events to interact with pears are also a highlighting factor.

That being said when it comes to compensation the organization did not have a clear standard there are many variations in remuneration within the same grade that to being high variant at times especially when it comes to new recruits from the industry they are paid high remuneration in comparison to the existing employee to get the same job accomplished. Furthermore, SOPs are in a place where if clients default on credit payments for example a motor insurance policy been obtained from a salesperson on credit terms and the client defaults payments and this is informed in 30 days due to multiple reasons the company charges a fee to the client if the client does not pay the charged amount the relevant salesperson will be charged the said amount from his remuneration.  

Reasons stated above have been a big dissatisfaction among employees causing high turnovers to address the issue the company has introduced a formula on remuneration and recruitment is done based on the formula which has eased the dissatisfaction levels at the moment. Unfortunately, the SOP that is in a place where the salesperson is charged for a customer’s default has not been addressed in a lucrative manner hence dissatisfaction is still among certain segments of employees.  

 To conclude Hertzberg’s two-factor theory is a lucrative concept that even today’s organizations can adapt to create a motivational environment for their employees. However, it will have to concentrate on delicate issues to eliminate dissatisfaction and keep all its employees motivated.  

References

 Alrawahi, S., Sellgren, S., Altouby, S., Alwahaibi, N. and Brommels, M., 2020. The application of Herzberg's two-factor theory of motivation to job satisfaction in clinical laboratories in Omani hospitals. Heliyon, 6(9), p.e04829. [online]  Available at: https://doi.org/10.1016/j.heliyon.2020.e04829 [Accessed 11 August 2022].

Furnham, A., Forde, L. and Ferrari, K., 1999. Personality and work motivation. Personality and Individual Differences, 26(6), pp.1035-1043. [online]  Available at: https://doi.org/10.1016/S0191-8869(98)00202-5 [Accessed 11 August 2022].

Lundberg, C., Gudmundson, A. and Andersson, T., 2009. Herzberg's Two-Factor Theory of work motivation tested empirically on seasonal workers in hospitality and tourism. Tourism Management, 30(6), pp.890-899. [online]  Available at: https://doi.org/10.1016/j.tourman.2008.12.003 [Accessed 11 August 2022].

Parsons, E. and Broadbridge, A., 2006. Job motivation and satisfaction: Unpacking the key factors for charity shop managers. Journal of Retailing and Consumer Services, 13(2), pp.121-131. [online]  Available at: https://doi.org/10.1016/j.jretconser.2005.08.013 [Accessed 11 August 2022].

Pinder, C., 2008. Work motivation in organizational behavior. 2nd ed. New York: Psychology Press.

Ruthankoon, R. and Olu Ogunlana, S., 2003. Testing Herzberg’s two‐factor theory in the Thai construction industry. Engineering, Construction and Architectural Management, 10(5), pp.333-341. [online] Available at: https://doi.org/10.1108/09699980310502946 [Accessed 11 August 2022].