Spouse travel expenses Accounting Software Strategic Planning Process Insurance Schemes Enterprise Risk Management Program Account-Based Marketing Wrong Software For Your Organization Operational Review Internal Benchmarking Reports Sales approach Capturing Data Older Workers Pooled Employer Plans Financial Statement Options BOI Reporting Rules Privileged Users Medicare Premiums DOL Business valuation Trust Fund Recovery Penalty Value-Based Sales Fringe Benefits Green Lease Strategic Planning Financial Reporting Marketing Strategy Succession planning health care benefits Cyberinsurance PTO Buying Media Screening Pipeline Management Billing Best Practices Solo 401(k)

Climbing the ‘Hierarchy of Needs’ to Find Employee Engagement

In 1943, psychologist Abraham Maslow set out his ‘hierarchy of needs.’ This theory suggested that human behavior is a response to a variety of needs ranging from physical survival to self-actualization.

At this point, you may be wondering, “What does this have to do with my business?” The answer is, truly engaged employees are motivated by needs other than just financial compensation.

Five tiers of needs

As mentioned, Maslow theorized that humans have various needs to live a fulfilling life. The hierarchy, beginning with the most basic needs, comprises the following five tiers:

  1. Physiological needs, such as air, food, drink, & shelter
  2. Safety needs, such as security, order, & protection from the elements
  3. Social needs, such as relationships, family, & affection
  4. Esteem needs, such as healthy self-esteem, achievement, independence, & managerial responsibility
  5. Self-actualization needs, such as realizing personal potential, self-fulfillment, & personal growth

Generally, compensation covers the first tier. Money allows people to nourish themselves and obtain a place to live. (Air is usually free.) Job security and stability, as well as benefits, contribute to the second tier, meeting a person’s safety needs and need for order. Many people are able to meet at least some of their belongingness and other social needs at work (tier three).

The last two

It is the last two tiers that are often trickiest for employers. To empower employees to meet tiers four and five at work, you will need to learn the specific motivations to which each person seems to respond.

For example, esteem needs could be satisfied by offering various forms of praise to strong performers and those who help others. Meanwhile, self-actualization needs can be met by establishing clear career paths that include promotions.

Critical component

Your employees have needs and motivations in common with most of the people on the planet. The key is creating a workplace that helps meet these needs and, in turn, produces that critical component of any successful organization — the engaged employee.

Related Articles

Talk with the pros

Our CPAs and advisors are a great resource if you’re ready to learn even more.