People choose to work for a variety of reasons, reflecting their individual needs, desires, and circumstances. Here are four key factors:

• Financial Reward: The most obvious reason is to earn money. Work provides income to meet basic needs such as food, housing, and clothing. It also allows for discretionary spending, savings, and investment.
• Personal Fulfillment: Many individuals find satisfaction and a sense of purpose in their work. This can stem from using their skills and talents, contributing to society, or achieving personal goals within their role.
• Social Interaction: Work provides opportunities for social interaction and building relationships with colleagues. This can contribute to a sense of belonging and reduce feelings of isolation.
• Career Advancement & Status: Work can offer opportunities for career progression, leading to increased responsibility, higher pay, and greater status within society. This can be a significant motivator for ambitious individuals.

These factors are often interconnected and can vary in importance depending on the individual's age, life stage, and personal values.

Extrinsic motivators are external rewards or punishments designed to influence behavior. Examples include: Financial incentives (bonuses, salary increases, commission), Performance-related rewards (promotions, awards), Company benefits (health insurance, pension schemes), and Disciplinary action (warnings, demotions). These are generally effective in the short term, particularly for tasks requiring high levels of accuracy or speed. However, over-reliance on extrinsic motivators can reduce intrinsic motivation and lead to a focus on rewards rather than the quality of work. It can also create a competitive and potentially negative work environment.

Intrinsic motivators are internal rewards derived from the task itself. Examples include: Opportunities for personal growth and development (training, mentoring), Challenging and interesting work (job enrichment, job rotation), Autonomy and control over work tasks (flexible working arrangements), A sense of achievement and purpose (connecting work to the company's mission), and Positive relationships with colleagues (team-building activities). Intrinsic motivators are generally more effective in the long term as they foster a sense of engagement and commitment. However, they can be harder to implement and may not be suitable for all employees or all types of work. It requires creating a supportive and stimulating work environment.

Evaluation: The most effective approach is often a combination of both extrinsic and intrinsic motivators. Extrinsic rewards can provide short-term boosts in performance, while intrinsic motivators can foster long-term engagement and commitment. The key is to design a system that balances both, ensuring that extrinsic rewards are not overly emphasized and that opportunities for intrinsic motivation are readily available. A business should also consider individual differences in motivation preferences when designing its reward system. Regular feedback and employee involvement in the design of the system are also crucial for success.

Labour turnover refers to the rate at which employees leave an organization. High labour turnover is costly and disruptive. A well-motivated workforce is far less likely to leave, leading to significantly lower labour turnover rates. Here's how:

• Increased Job Satisfaction: Motivation is closely linked to job satisfaction. When employees feel valued, respected, and have opportunities for growth, they are more content with their jobs and less likely to seek employment elsewhere.
• Stronger Employee Loyalty: A motivated workforce develops a stronger sense of loyalty to the organization. They feel a connection to the company's mission and are more invested in its success.
• Improved Employee Retention: Organizations that prioritize employee motivation are more likely to retain their valuable employees. This reduces the costs associated with recruitment, training, and onboarding new staff.
• Positive Work Environment: Motivation often fosters a more positive and supportive work environment. This can lead to increased teamwork, collaboration, and a greater sense of belonging, further reducing the likelihood of employees leaving.

Costs of High Labour Turnover:

• Recruitment Costs: Advertising vacancies, screening applications, and conducting interviews are all expensive.
• Training Costs: New employees require training, which can be time-consuming and costly.
• Loss of Productivity: It takes time for new employees to become fully productive. During this period, the organization experiences a loss of output.
• Reduced Morale: High turnover can negatively impact the morale of remaining employees, leading to decreased productivity and increased stress.
• Loss of Institutional Knowledge: When experienced employees leave, they take valuable knowledge and expertise with them.