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IGCSEBusinessCambridge (CIE)Revision Notes2. People in Business2.4 Motivating EmployeesThe Importance of a Motivated Workforce

Syllabus Edition

First teaching 2025

First exams 2027

The Importance of a Motivated Workforce (Cambridge (CIE) IGCSE Business): Revision Note

Exam code: 0450, 0986 & 0264, 0774

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Motivation and work

  • Motivation is the inner desire or willingness that drives a person to take action and achieve a specific goal or outcome

    • Motivation can be intrinsic, coming from within a person (values, beliefs etc)

    • Motivation can be extrinsic, coming from external factors (rewards or punishments)

Why do people work?

  • People work for many different reasons

    • They need to earn money to fund their lifestyle and ensure they have the necessities required

    • For some, work is voluntary or low-paid and done to give them a purpose

    • Some people work for the opportunity to mix with other people

    • For many, employment allows them to fulfil their aspirations

Why people work

Flowchart with main question "Why do people work?" and reasons: earn a wage, purpose, pursue aspirations, security, and work with others.
Individuals go to work for a variety of reasons, including earning a wage or salary and to give them a purpose

Benefits of a motivated workforce

  • A motivated workforce brings a range of important benefits that can improve performance, reduce costs and give a business a competitive advantage

Benefit

Explanation

Increased productivity and efficiency

  • Motivated employees are more productive, meaning they can produce more in less time

    • This often results in higher output and better quality, improving customer satisfaction

    • Greater productivity allows the business to increase profits without increasing labour costs

Lower labour turnover

  • Motivated employees feel valued and are more likely to stay with the company

    • This leads to lower labour turnover, reducing the need for frequent recruitment and training

    • It also saves time and money while keeping experienced staff who help maintain consistent quality

Higher reliability and loyalty

  • Motivated workers are more reliable

    • They arrive on time, meet deadlines and take fewer sick days

    • Their loyalty builds trust with the business and creates a more positive workplace culture

Examiner Tips and Tricks

Don’t just say motivation is “good for the business” – examiners want specific outcomes such as higher productivity, lower absenteeism, and reduced labour turnover

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    Author
    Reviewer
    Lisa Eades

    Author: Lisa Eades

    Expertise: Business Content Creator

    Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

    Steve Vorster

    Reviewer: Steve Vorster

    Expertise: Economics & Business Subject Lead

    Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.