Factors Impacting Motivation of Indian Employees with ... · that it forced employees to leave. (Issac, 2017) While the unchecked culture became toxic over time, it yielded in promoting

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219 Copyright © 2017. Vandana Publications. All Rights Reserved.

Volume-7, Issue-5, September-October 2017

International Journal of Engineering and Management Research

Page Number: 219-234

Factors Impacting Motivation of Indian Employees with Special Focus

on Older HR Professionals

Varshini Rajesh1, Renuka Kumar

2, Aditya G. Kovvali

3

1,2,3Student, Symbiosis Centre for Management Studies, Pune, INDIA

ABSTRACT Human Resource Management must keep pace

with the changing as well as aging demographic that India

is going to find itself harbouring. It is therefore important

to understand the factors that motivate this new breed of

employees. Factors motivating employees can be

understood through various classifications such as

extrinsic, intrinsic, financial and non-financial. Though

frameworks exist to study how to create optimal

motivational strategies, there is a dearth of work

understanding Indian HR professionals. Administering a

questionnaire on 91 respondents from the field of HR, this

study used factor analysis to find the factors which

influence motivation. By using a combination of

motivation-linked incentives and personal preference a

holistic perspective was found in the form of five distinct

factors that influence motivation in these professionals.

This study also explores some implications for managers

that emerge from the findings which can keep employees

engaged in the firm. The limitations and scope for further

research are also discussed.

Keywords--Motivation, Intrinsic, Extrinsic, HRM, Factor

Analysis

I. INTRODUCTION

Human Resource Management (HRM) plays an

integral role in any organisation, impacting firm

performance in a significant way across the world

(FINANCIAL, 1995; Youndt et al., 1996; Subramony,

2009) and in India (Singh, 2000; Singh, 2004).

Competent HRM, more so. (Huselid, Jackson & Schuler,

1997) One of the key HRM functions is to help maintain

a motivated work force through a combination of various

incentives of varying nature. Though these incentives

may seem to distract the company’s work or even at

times seem to cause apparent loss of productivity and

money, the rewards are often multi-foldthe effort put in.

Take for instance Ujjivan. The micro lender has multiple

HR policies including asking employees to take 10 days

off above and beyond their normal paid leave and

employees are not given job titles. (Dasgupta, 2016)

These actions have created a workforce which is so

motivated to work that it reflected in their IPO, which

was subscribed 40.75 times more than the initial

offering. (Mudgill, 2016) Clearly, even if the investors

do not think too much about the firm’s HR policies, they

clearly see enough value in the company to risk

investing their money in it.

While great HR policies have the capacity to

motivate employees, the tools used to motivate may also

backfire and create an undesirable environment where

employees are not only ‘not motivated’ but also desist

the workplace. Take for instance the case of Uber, the

online cab aggregator whose culture was so competitive

that it forced employees to leave. (Issac, 2017) While the

unchecked culture became toxic over time, it yielded in

promoting behaviours which are not conducive for

positive motivation. Motivating employees is not a one-

pill-for-all kind of task. Motivating individuals is not as

simple as applying the rules of physics to a system.

People are not atoms, they behave in different ways and

respond to different incentives differently. Despite the

large repository of insights driven by hardcore

researchon this topic, it is very surprising to see the

workforce at large being highly disengaged. Take for

instance a Gallup survey in 2013 which showed that

across the world only 13% of individuals feel engaged in

their work(Crabtree, 2013).

In India, there is a long history of both HRM

evolving in the country (Saini & Budhwar, 2004) as well

as the impact to HRM in the country due to the entry of

MNCs(Som, 2006). This evolution in our own

understanding of Indian HRM now stands to great use

given the demographic dividend that India has been

blessed with. In a PwC report titled ‘Indian workplace of

2022’, 62% of CEOs have stated that they plan to invest

in revamping their talent strategy. (PwC India, 2014)

Though we see a relaxation in the baby boom, the

country has been left with a large population that is

aging. It is imperative for organisations to understand the

growing needs of this aging demographic to tailor their

motivational strategies accordingly.

II. LITERATURE REVIEW



Motivation (for the purposes of this study) is

defined as the driving principles, desires, and wants that

incudes goal oriented behaviours in an individual. Such

said behaviour incites the individual to pursue actions

within and even beyond requirement to aid them in

reaching and achieving their goal. In the context of

organisations, this would be interpreted as employees

taking the initiative to get the work done. One of the key

developments in the study of motivation is the Self

Determination theory.

The self-determination theory is a macro theory

on human motivation which address the key issues of

understanding human self-regulation, aspirations, energy

and vitality etc. (Ryan & Deci, 2008)The theory draws at

its most basic level a key distinction between two types

of motivation: intrinsic and extrinsic motivation. (Ryan

& Deci, 2000; Niemiec & Spence, 2017)

Intrinsic motivation: This is the type of

motivation where the will to perform comes from doing

the task itself. It is the inner drive of the person which

takes them to the level where they are motivated to put

their best foot forward simply for the sake of doing so. A

good example is Google’s 80/20 rule. From around

2007, Google has given its employees the autonomy for

pursue 20% of their time for personal projects which

they believed would benefit Google. While this policy

has been discontinued for various reasons (Ross, 2015) it

did leave an impact, with key Google products such as

Gmail, AdSense and Google News coming out of this

program. (Recruiterbox, 2012)

Extrinsic motivation: This is the type of

motivation where the individual has incentives provided

to him/her to perform the same task. The person is

driven by the allure of an external rewards which

facilitates them to motivate themselves to work in that

direction. In most companies, this comes in the form of

rewarding people with promotions, increase in the pay of

employees, bonuses etc. Some studies have found that

extrinsic motivators have higher impact for lower paying

jobs(Centers & Bugental, 1966) while it is lower or less

relevant for higher paying jobs (Chaves, Ramos &

Santos, 2016)

Both these kinds of motivation have been

subject to much discussion (Chen & Bozeman, 2013;

Cerasoli, Nicklin & Ford, 2014; Landry et al., 2016). It

is however established in academic literature that

between the two, intrinsic motivators tend to be better

indicators of motivators compared to extrinsic

motivators regardless of the incentives. (Cerasoli,

Nicklin & Ford, 2014) In fact extrinsic factors even tend

to undermine behaviour earlier motivated only by

intrinsic facts. (Lepper, Green & Nesbitt, 1973;

Warneken & Tomasello, 2014) and may at times even

have a negative impact on goal achieving behaviour

(Lemos & Verissimo, 2014) It has been noted that

extrinsic motivational factors such as good wages may in

fact be intrinsic in nature if one considers a good wage to

be a source of providing for one’s family or oneself with

a good life. (Wiley, 1997)

III. WORKFORCE IN INDIA

India is currently beginning to accrue the

benefits of its demographic dividend which brings with

itself an increase in the labour force, increased savings

and increase in human capital (Bloom, Canning &

Sevilla, 2007). It has even been said that given the

current context the positives of this demographic

dividend will get amplified. (Chandrasekhar, Ghosh &

Roychowdhury, 2006) For this paper, it is the promise of

this increase in the labour force and increase in human

capital whose implications are relevant. The Indian

workforce has established itself as highly competent in

the world markets (Press Trust of India, 2017)It is

however important to take note that a highly talented

workforce cannot by itself be the engine to the

organisation’s growth. HRM must provide the necessary

frameworks to channel the motivation of these

employees and maximise their engagement and through

that their output. For this study, two demographic groups

have been taken:

YOUNGER EMPLOYEES (25-40)

Managing the younger generation of employees

has always attracted much debatefrom academic circles

(Caudron, 1997; Feji et al., 1999; Raines, 2002; Twenge,

2002). Today with more than 1 million employees

joining the workforce per month in India (Nanda, 2012),

motivational strategies need to cognizant of what are the

requirements of this new breed of young employees.

Among young Indian employees, factors such as

flexibility at work have been established to improve their

motivation. (Gulyani & Bhatnagar, 2017). However, this

demographic is in turn influenced by older employees

who have already spent time in the organisation. It is

important to therefore study them along with their older

peers to gain an insight into the factors that now

motivates them.

MIDDLE AGED EMPLOYEES (40+)

With rapid increase in better healthcare

standards around the world it is now visibly obvious that

people are living for longer now. In fact, in India life

expectancy has gone up by 5 years. (Sampath, 2014)

While this calls for celebration one must be equally

aware that most of these ‘middle aged’ workers will be

competing for jobs. In the United States of America this

demographic shift in the number of people dominating

the workforce is already apparent. (DeSilver, 2016)

In India, while the issue of employment faces a

host of different problems (The Economist, 2013) It is

challenging to find, it would be foolish to miss out the

demographic divide coming full circle and bringing with

an aging workforce. This aged workforce must be dealt

with differently. (L. Nadanwar, Das & M.V. Nadanwar,

2017) They would be a different breed of workers with

different priorities. This matter has been the subject of

much academic research (Hedge, Borman & Lammlein,

2006; Avery, McKay & Wilson, 2007; Baker, Al-

Ghatani & Hubona, 2007; Auerbach, Buerhuas &

Staiger, 2007; Calo, 2008; Mulders, Henkens &

Schippers, 2016). The biggest challenge for such a



demographic is the matter of motivating them to work

and continue to work in the firm. One must adopt a

different framework to tap the aspirations and

requirements of this demographic to ensure the

organisation remains both highly productive, efficient

and competent.

IV. INCENTIVES

While motivation is a tool, it is only through

policies that is can be actualised. Through literature

review and from the experience of the authors, this study

has identified certain incentives which promote

employee productivity and motivation. For the sake of

this study, the incentives have been divided into

financial and non-financial incentives.

Financial incentives

Financial incentives are those types of

incentives which are aimed at providing some material

benefit to the employee usually in the form of tangible

remuneration. Financial incentives have close to 60%

covariation with performance when considering field

experiments, which have been considered as a reliable

setup to test observations. (Jenkins et al., 1998)

Aspect Linking it to employee productivity/motivation

Bonus (Solomon et al., 2012; Ryan, Sutton & Doran, 2014; Barrandale

et al., 2015)

Pay/Salary increase (Trevor, Gerhart & Boudreau, 1997; De Ree, 2015)

Fringe benefits (Leibowitz, 1983; Hafiza et al., 2011)

Paid Holidays (Jha & Misra, 2016; Hilbrecht & Smale, 2016)

Employee Stop Option Plans (Smith & Stulz, 1985; Cheng & Warfield, 2005)

Profit Sharing (Kruse, 1992; Poole & Jenkins, 2013)

NON-FINANCIAL INCENTIVES

Non-financial incentives are those incentives

which make use of non-material benefits to motivate

employees usually in the form of improving intangible

aspects of the job. Though over the short run financial

incentives tend to do better, over time both financial and

non-financial incentives provide similar returns.

(Peterson & Luthans, 2006)


Job Enrichment (Parker & Wall, 1988; Tim & Bakker, 2014)

Training & Development (Tahir et al., 2014; Elnaga & Imran, 2013)

Promotion (Trevor, Gerhart & Boudreau, 1997)

Employee Recognition (Bradler, Dur & Neckermann, 2016; Burke, Hecht & Stern; 2016)

Status (Porter, 2016)

Job security (Yousef, 1998; Sverke, Hellgren & Näswall, 2002)

V. INDIVIDUAL PREFERENCE FOR

FACTORS

For the sake of the study, certain variables were

considered to study the preference of the participants

when given these choices. The


Work Environment (Amabile et al., 1996; Vischer & Wifi, 2017)

Organisational Culture (Anitha & Begum, 2016; Valencia, Jiménez, &

Valle, 2016; Schneider et al., 2016)

Relation with Colleagues/ Subordinates (Butler et al., 2016)

Relation with Superiors (Babalola, 2016)

Autonomy/Freedom at workplace (Van Yperen, Wörtler, & De Jonge, 2016)

Comfort Level (From experience)

Sense of Belonging to the Firm (Lasrado, Gomiseck & Uzbeck, 2017)

Financial Perks and Benefits Already discussed

Non - Financial Perks and Benefits Already discussed

VI. RESEARCH GAP

There is inconclusive amount of research on

emerging trends in motivation with emphasis on middle

aged and young Indian employees and factors that

influence what motivates them. Through this study this

paper captures the pulse of contemporary motivators for

employees who are starting out and in the middle stage

of their careers.

Objectives of the paper is to find the factors

which influences the contemporary workplace. This

study also aims to identify through these factors

motivational strategies that firms can use to review and

improve their current motivational strategies.



VII. METHODOLOGY

A sample of 91 Indian HR professionals was

chosen using snowball sampling technique. A structured

questionnaire was administered which had twenty-eight

close-ended and two open ended questions. The close

ended questions were in the form of five-pointLikert

scales. These questions looked at both financial and non-

financial elements in the organisation’s own

motivational policies and then asked the HR

professionals about their own preference of motivating

factors. The data was then coded with different labels

and treated on SPSS. Factor analysis was performed on

the same. It is recommended that the statistically valid

sample size be five-ten times the number of items being

tested. (Nunnally, 1975)For KMO, the values above 0.5

are considered and the significance levels below 0.05 is

taken as indicator of reliability of the factor analysis. The

Cronbach alpha values, a value above 0.7 is taken to be

reliable.(Tavakol & Dennick, 2011) This study’s data set

holds true for this sort of treatment as shown below:

Bartlett’s test of Sphericity

Factor

Analysis of-

Cronbach

Alpha value

KMO

value

Approx. value

of chi sq.

Value of chi sq. Validity of

results

Financial

and non-

financial

benefits

0.89 0.97 341.09 40 Yes

Holistic

analysis

0.91 1.00 818.76 179.392 Yes

As can be seen above, the variables employed in this study are statistically valid.

DEMOGRAPHICS

GENDER

Value Label Frequency Percent

Male 62 68.13 %

Female 29 31.87 %

Total 91 100.0

AGE

Value Label Frequency Percent

18-25 years 1 1.10 %

20-40 years 23 25.27 %

40+ years 67 73.63 %

Total 91 100.0

Table - 2

Figure - 2

Table - 1

Table - 0

Figure - 1



A clear majority of the participants were men

(68.13%), while in terms of age it is dominated by

employees who are 40+ (73.63%).

VIII. RESULTS

FINANCIAL AND NON-FINANCIAL When factors are found based on the

Eigenvalues above 1, two factors can be found.

However, three factors better explain the observations

(67%) than the four factors (59%).

Communalities



TotalVarianceExplained

Component

InitialEigenvalues ExtractionSumsofSquaredLoadings

Total %ofVariance Cumulative% Total %ofVariance Cumulative%

1

2

3

4

5

6

7

8

9

101112

5.72

1.47

.94

.73

.64

.57

.54

.44

.38

.24

.19

.15

47.67

12.22

7.81

6.06

5.37

4.75

4.49

3.68

3.15

1.96

1.56

1.27

47.67

59.89

67.70

73.76

79.13

83.89

88.37

92.05

95.20

97.17

98.73

100.00

5.72

1.47

.94

47.67

12.22

7.81

47.67

59.89

67.70

Component

RotationSumsofSquaredLoadings

Total %ofVariance Cumulative%

Table - 4



1

2

3

4

5

6

7

89...

3.511.982.6

3

29.2716.5121.92 29.2745.7867.70

ComponentMatrix

Component

1 2 3

Nf1

Nf2

Nf3

Nf4

Nf5

Nf6

F1

F2

F3

F4

F5

F6

.72

.78

.80

.73

.65

.77

.61

.83

.72

.64

.50

.43

.18

.00

- .04

.07

.21

- .02

.31

.21

- .01

.15

- .77

-.79

-.25

-.11

- .16

.31

.53

.22

- .38

-.25

-.19

.40

- .01

-.02

Table – 4 Table - 5

Component

1 2 3

Nf1

Nf2

Nf3

Nf4

Nf5

Nf6

F1

F2

F3

F4

F5

F6

.73

.64

.68

.36

.20

.42

.77

.82

.64

.25

.15

.10

.08

.27

.32

.18

.01

.29

-.07

.10

.26

.07

.90

.89

.27

.37

.34

.68

.84

.62

.13

.33

.27

.72

.14

.08

RotatedComponentMatrix



Unitary benefits Apropos financial benefits Apropos benefits

Bonus ESOP Status

Salary/Pay Raise Profit sharing Job security

Fringe benefits Employee Recognition

Job Enrichment Paid Holidays

T&D

Promotion

HOLISTIC ANALYSIS

When factors are found based on the Eigen

values above 1, fours factors can be found. However,

five factors better explain the observations (71%) than

the four-factor model (66%).

Communalities

TotalVarianceExplained

Component

InitialEigenvalues ExtractionSumsofSquaredLoadings

Total %ofVariance Cumulative% Total %ofVariance Cumulative%

Initial Extraction

F1

F2

F3

F4

F5

F6

Nf1

Nf2

Nf3

Nf4

Nf5

Nf6

I1

I2

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

.66

.77

.55

.57

.76

.82

.70

.65

.71

.61

.67

.67

.81

.64

Initial Extraction

I3

I4

I5

I6

I7

I8

Ik9

Ik10

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

.82

.79

.82

.74

.74

.66

.80

.69

Table - 6

Table - 7



1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

8.00

3.64

1.75

1.29

.96

.86

.78

.68

.63

.58

.49

.42

.37

.31

.26

.25

.21

.18

.14

.09

.07

.05

36.34

16.55

7.96

5.85

4.36

3.91

3.57

3.10

2.85

2.64

2.22

1.92

1.67

1.40

1.20

1.13

.97

.80

.61

.41

.30

.24

36.34

52.90

60.86

66.71

71.07

74.98

78.55

81.65

84.50

87.14

89.36

91.28

92.94

94.35

95.55

96.67

97.64

98.44

99.05

99.46

99.76

100.00

8.003.641.7

51.29.96

36.3416.557.965.

854.36

36.3452.9060.8666.

7171.07

Component





12345 2.674.052.4

03.952.57

12.1318.3910.92

17.9411.69

12.1330.5241.4459.

3871.07

Component



6

7

8

9

10

11

1213141516171819202

122

Table - 8



Component

1 2 3 4 5

F1

F2

F3

F4

F5

F6

Nf1

Nf2

Nf3

Nf4

Nf5

Nf6

I1

I2

I3

I4

I5

I6

I7

I8

Ik9

Ik10

.61

.77

.65

.54

.36

.27

.55

.65

.77

.57

.49

.68

.63

.51

.61

.62

.75

.49

.55

.66

.69

.57

-.06

-.25

-.31

-.35

-.46

-.54

-.39

-.43

-.29

-.45

-.43

-.38

.54

.46

.59

.61

.28

.53

.48

.22

.20

.10

.44

.31

.04

.07

- .52

-.55

.40

.09

.06

.11

.17

-.03

.15

.25

-.04

.00

- .12

.01

- .05

-.41

-.24

-.58

.18

.11

.03

- .34

.38

.36

.22

.13

.19

-.25

-.46

-.19

.15

.31

.13

.15

.04

.00

- .45

-.09

-.24

-.14

.24.05.16

-.19

-.03

.13

.17

-.17

-.04

-.03

-.07

-.12

-.28

.07

- .30

-.01

-.40

.46

.10

- .04

.41

.09

Table – 9 Component Matrix



RotatedComponentMatrix

Component

1 2 3 4 5

F1

F2

F3

F4

F5

F6Nf1

Nf2

Nf3

Nf4

Nf5

Nf6

I1

I2

I3

I4

I5

.73

.63

.44

.08

.08

.10

.72

.38

.48

.25

.13

.19

.21

.47

.06

.22

.04

.21

.26

.09

.10

.03

-.16

.02

.21

.31

-.01

-.07

.16

.85

.59

.88

.75

.80

-.03

.15

.29

.06

.85

.87

.14

.35

.38

.14

-.03

.27

-.10

-.09

-.01

-.03.18

.25

.52

.46

.74

.18

.13

.39

.57

.49

.72

.80

.72

.08

-.12

.04

- .06

.35

.14

.10

.23

.08

-.01

.05

-.04

-.09

.08

.11

.12

.14

.15

.20

.22

.40

.16

Component

1 2 3 4 5

I6

I7

I8

Ik9Ik10

.34

- .04

-.06

.19

-.15

.34

.43

.49

.22

.29

-.11

-.25

.32

.14

.44

-.15

.26

.25

.25

.23

.69

.65

.49

.79

.59

Table - 10



Unitaryjob-related

element

Systemelement Apropos financial

element

Unitary benefit-

relatedelement

Latentelement

Bonus Work Environment Profit Sharing Paid Holidays Freedom at the

workplace

Salary/Pay Raise Organisational

culture

ESOP T&D Comfort

Fringe Benefits Relationship with

Colleagues

Employee

Recognition

Financial perks

Job enrichment Relationship with

Subordinates

Promotion Non-Financial

perks

Relationship with

Superiors

Status

Sense of Belonging Job Security

IX. ANALYSIS

From the treatment of the data we can see some

clear trends emerge from the data. For both financial and

non-financial incentives, two kinds of incentives emerge:

1. Unitary: These are incentives restricted to what

the individual and are job related. In terms of

financial incentives, it amounts to bonuses and

fringe benefits while for non-financial

incentives it means T&D as well as job

promotions.

2. Apropos: These are incentives which are with

respect to the organisation. Financial incentives

such as paid holidays and non-financial

incentives such as status come under such type

of incentives.

3. Apropos financial: ESOPs and profit sharing

come under this factor.

When a complete view of the data is taken, the five

factors that emerge are:

1. vUnitary job-related element: This consists of

all the aspects that an employee individually

receives from his/her job. Bonuses, salary

increase etc. come under this.

2. System element: This is the sum of all

interactions in the organisation. It includes

those the employee interacts with as well as the

social structure (organisational structure) which

governs how the employees treat and are treated

by others.

3. Apropos financial element: This element keeps

repeating itself in the same pattern. ESOPs and

profit sharing comprise of this element as they

provide an ‘financial umbilical cord’ between

the employee and the company.

4. Unitary benefit-related element: This consists of

all the aspects that an employee receives from

the organisation as benefits above and beyond

what it provides employees and is inclusive of

fringe benefits, paid holidays, job security etc.

5. Latent element: This is composed of all the

informal benefits that the employee accrues

from the workplace, such as freedom, comfort

as well as financial and non-financial perks.

X. DISCUSSION

From the above analysis, the following is worth

noting:

1. Our study uses both what HR professionals believe are

best practises in their individual respective firms and

their personal preference for certain elements which they

believe keeps them motivated. This holistic analysis

allows us to make a better estimation of how HR

professionals themselves feel about certain practises.

This analysis holds true for other Indian employees in

support or main functions as well.

2. The factor analysis shows a clearly that ESOPs and

profit sharing plans should be treated together as one

strategy separate from the others. This may be due to

their unique predisposition of tying the employee to the

firm financially while providing the sort of intrinsic

motivation to do well (feeling greater accountability for

the success and seeing their hard work being paid off in

directly rather than through some pay-check or bonus) It

must be noted that while ESOPs tend to bring the before

mentioned attachment to the company, it may not be a

good substitute for bonuses like in the case of Twitter.

Twitter would provide all its employees with great stock

option plans instead of high salaries. This backfired as

the company was only selling the potential it could reach

rather than making good on the present efforts of its

employees. (Spross, 2016)

3. Irrespective of being financial or non-financial in

nature, the incentives are clearly differentiated between

whether they impact only the individual (unitary) or are

rewarded with respect to their other colleagues (Status,

job security and even profit sharing where the individual

stands to gain with respect to other fellow employees)

Studies have shown that employee recognition boosts

motivation when provided to only the best performers in

the organisation. (Bradler, Dur & Neckermann, 2016)

4. When analysing the five factors system one can see

that the motivating incentives in the job can be split into

two parts, the incentives which impact work (such as

Table - 11



bonuses or job enrichment) and the incentives that act as

benefits or add ins (such as paid holidays) Therefore,

policies which add value to employees should not be

‘above and beyond’ what the organisation is offering but

as a strategy on its own which motivates people and

improves their motivation. Also, the systems function

sees all social elements as valuable sources to motivate

employees. Thus (as discussed above) social interactions

and the system enabling it can become points where

employees can be enabled to feel motivated.

XI. MANAGERIAL IMPLICATIONS

The application of this framework should be to

find the different dimensions where HR managers can

implement policies and how those policies should be

treated.

1. When using financial incentives, it is important for the

manager to have a blend of incentives that impact the

individual alone as well as impacts the individual with

respect to the organisation. This paper recognises that

pay for performance (Rosenthal et al., 2005; Starfield &

Mangin, 2016) while guided with awareness of its

potential pitfalls(Gerhart & Fang, 2014)is a great option

going ahead. In terms of using financial incentives which

tie the employees to the company, it is important to note

that they make their own category of incentives in every

case. ESOPs are widely used to create ‘employee owed

organisations’ (Rosen & Klein, 1983) and while there is

much literature about the industry’s use (Frye, 2004;

Wilson, 2016) being a financial incentive, it too has only

a temporary impact on company productivity (Pugh,

Oswald & Jahera, 2000) or may only at times have a

positive impact(Kruse, 2016). This study would like to

propose revenue sharing models, where employee not

only enjoy the profits (like in profit sharing schemes) but

also participate in bearing a distributed part of the losses.

HR professionals may otherwise also consider making

employees an active part of board meetings and financial

discussions within the company to psychologically

increase the sense of ownership the individual may have

to their vested stock and/or accrued profit through the

profit sharing scheme of their organisation.

2. For non-financial incentives, it is interesting to note

that policies to motivate employees may be targeted at

making their jobs or work richer in the form of job

enrichment, promotions etc. which is analogous to the

job characteristics theory. Therefore, HR professionals

may consider things such as mentorship programmes or

sending employees on offshore projects to improve their

quality of work. A mentorship program helps the

employee improve their own productivity by means of

understanding their own shortcomings. It is not

uncommon for employee to look informally for mentors

to guide them (Holt et al., 2016) and there is much

established literature to study and take notes from

(Bramley et al., 2014; Mundia, 2014; Masalimova,

Sadovaya & Flores, 2016) While many companies are

already sending employees abroad (Chan, Yuang &

Chuang, 2013) it should not increasing be used as a tool

to motivate employees. The other is social elements such

as job recognition, status etc. It must be important to

note that fair systems must be kept in place with

emphasis on merit as the sole criteria for such

interventions to be successful.

XII. LIMITATIONS OF THE STUDY

1. The sample size could have been larger.

2. There is under representation of women in the

sample taken.

3. The participants were not asked for the industry

where they work. This puts the study at risk of

not knowing the representation of different

industries in the study.

4. The study was limited to only six items for both

financial and non-financial incentives. More

incentives could have been identified.

XIII. SCOPE FOR FURTHER

RESEARCH

There is scope for further research.

Confirmatory studies could look whether the same

results hold true. Employees of other functions such as

finance, marketing etc. could be studied to understand

motivational strategies that work for them. The

magnitude of strength for each of the identified factors

could be identified for professionals to better strategize

how to implement HR policies which maximise

motivation of employees.

XIV. CONCLUSION

Motivating employees is never an easy task and

with increase in the number of people working in

organisations, it is only poised to get harder. This is

especially true for employees that are getting older. By

looking at what factors are today critical for employees

to design HRM policies around, we can maximise the

impact of all efforts taken to motivate employees. This

study requires more confirmatory studies to strengthen

its claims. However, if this study in its current state can

aim to help the HRM professional in any way, it is

simply to make them more aware of the different

dimensions which need to be considered while framing

policies that aim to motivate this demographic. These

dimensions do not hold new HR policies guaranteed to

provide the HRM professional success but rather help

them understand which policies compliment together.

The factors established in this study may also be used as

a source of inspiration to find other innovative strategies.

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