Motivating Success: Analyzing Facebook's Reward System Through Herzberg's Two-Factor and Self-Determination Theories

By Ahmad Fuad
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​Introduction
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​Many businesses strive to create a motivational workplace environment that positively influences both the company and its employees. Therefore, it is essential for a firm to develop its own reward system, as it can have a significant impact on employee motivation. Ultimately, this will make employees more inspired, energetic, and willing to work diligently. Moreover, an effective reward system can help reduce employee turnover within the organization.

Thus, this will help the organization retain its staff, especially professional individuals. Nowadays, many large businesses are seeking to adopt an effective and successful reward strategy. Indeed, numerous companies have failed because they did not implement a strong reward system.
One successful example of a firm with an effective reward approach is Facebook. It is a well-known company with a global presence. Therefore, this report will describe the reward strategy that Facebook adopts. It will critically evaluate Facebook’s reward system and identify the rewards the company grants its employees.
Then, it will discuss the message Facebook aims to convey to its employees. Next, it will focus on how Facebook’s reward approach affects employee performance. Finally, it will offer suggestions to help Facebook further improve its reward system.

Facebook in BriefFacebook is one of the largest and most well-known companies in the world. It was ranked number one as the best workplace on Glassdoor in 2018. Each year, Glassdoor ranks the best workplaces based on employees’ reviews. These reviews assess areas such as job satisfaction, management, and leadership.
Employees also express their opinions about other aspects of the company, including challenges they face during their employment. There are many reasons why Facebook ranks among the best workplaces. One key reason is the compensation and perks the company provides (Business Insider, 2017).

The Reward System at FacebookFacebook offers numerous perks to its employees, which serve as strong motivators for effective performance. Some of these perks include:

1. A wellness allowance to cover gym memberships.
   
2. 21 days of paid vacation for full-time employees.
   
3. Free meals and snacks throughout the day.
   
4. Access to an on-site barbershop at the Menlo Park office.
   
5. On-site health and dental care (Business Insider, 2017).
   

Perks are not the only benefits Facebook provides; the company also offers competitive compensation. While not all employees are driven by money, higher salaries certainly contribute to job satisfaction. Facebook understands that competitive pay fosters greater contentment. Furthermore, employees are motivated by being surrounded by innovative and talented colleagues.
Additionally, there are ample opportunities for growth and development at Facebook. Employees feel valued due to constant communication between staff and senior leadership. CEO Mark Zuckerberg hosts weekly Q&A sessions to address employee concerns and discuss upcoming projects.
This practice fosters trust between leadership and staff. Transparency is a key part of Facebook’s culture (Business Insider, 2017). In essence, Facebook uses a variety of effective methods to reward its employees, including perks, compensation, open communication, and opportunities for growth.

The Message Facebook Wants to Deliver to Its EmployeesFacebook’s reward system sends a powerful message: the company values its employees and sees them not as costs, but as assets. It communicates that employees are important and that their voices matter. Facebook continually invests in staff development through training and learning opportunities.
This demonstrates that Facebook is committed to retaining its talented workforce. The company recognizes the importance of a soft human resource approach and its positive impact on both the organization and its people.
When a company adopts a soft HR approach, employees tend to be more loyal — something every organization desires, especially those with skilled and experienced staff.
Facebook also aims to maintain a motivated, driven, and inspired environment. This is why it offers attractive compensation and perks, which play a vital role in motivating employees to perform well. Employees are more likely to handle work pressure when they know their efforts will be rewarded.

How Facebook’s Reward System Drives Employee PerformanceIn 1959, Herzberg developed a motivation theory consisting of two factors. The first is the hygiene factor, which includes elements such as company policies, supervision, salary, and the work environment. These factors do not necessarily motivate employees, but their absence can lead to dissatisfaction (Gawel, 1997).
The second factor is motivational factors, also known as satisfiers. These include providing employees with responsibility, recognition, achievement, promotion, and opportunities for personal growth (Juneja, n.d.).
This is exactly what Facebook implements. It first establishes hygiene factors and then builds on them with motivators. As a result, these motivational factors drive employee performance at Facebook.

Suggestions to Improve Facebook’s Reward ApproachIt would be beneficial for all employees to participate in developing the company’s reward strategy (Geraghty, 2017). What motivates one employee may not motivate another (Haivas, Hofmans, & Pepermans, 2012). By involving employees in the process, the company ensures that rewards are perceived as fair and meaningful (Geraghty, 2017).
Furthermore, I recommend recognizing employees through verbal feedback. Psychologists emphasize the positive effects of non-monetary motivators such as praise and feedback (Kvaløy, Nieken, & Schöttner, 2013). Positive feedback encourages employees and strengthens engagement with management.
As a result, employees will be more willing to communicate effectively with leadership. Positive verbal feedback also boosts confidence and performance. “Positive feedback increases people’s confidence that they are able to pursue their goals” (Fishbach, Eyal, & Finkelstein, 2010). Therefore, providing constructive verbal recognition is highly recommended due to its significant impact on employee motivation (Dontigney, n.d.).

ConclusionIn conclusion, an organization can gain significant benefits from implementing a well-structured reward system. Employees appreciate recognition for their hard work and dedication.
A reward system demonstrates that the company values its employees’ efforts. Facebook serves as a strong example of an organization with an effective reward strategy. It strives to retain professional workers and reduce turnover through meaningful rewards and transparent communication.
Other companies can learn from Facebook’s approach, which has proven both successful and sustainable. However, it is advisable to involve all employees in developing reward systems and to incorporate positive verbal feedback as part of employee recognition.
Finally, to effectively motivate staff, a company must first establish hygiene factors to eliminate dissatisfaction and then build motivational factors to inspire higher performance. This approach fosters a healthier, more productive workplace environment.

ReferencesBusiness Insider. (2017). 7 reasons Facebook is the best place to work in America and no other company can compare.
Business Insider. (2017). 11 insanely cool benefits for Facebook employees.
Fishbach, A., Eyal, T., & Finkelstein, S. (2010). How positive and negative feedback motivate goal pursuit.
Gawel, J. (1997). Herzberg's theory of motivation and Maslow's hierarchy of needs.
Geraghty, S. (2017). 20 ways to increase employee motivation using rewards.
Haivas, S., Hofmans, J., & Pepermans, R. (2012). “What motivates you doesn’t motivate me”: Individual differences in the needs satisfaction–motivation relationship of Romanian volunteers.
Juneja, P. (n.d.). Herzberg’s two-factor theory of motivation. Retrieved from https://www.managementstudyguide.com
Kvaløy, O., Nieken, P., & Schöttner, A. (2013). Hidden benefits of reward: A field experiment on motivation and monetary incentives.