Sirota's Three-Factor Theory

Keeping Employees Enthusiastic

Sirota's Three-Factor Theory - Keeping Workers Enthusiastic

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Enthusiastic teams get great results.

High enthusiasm at work usually means great results.

But have you noticed how people often start new jobs eager to contribute, and then gradually lose that motivation?

Unfortunately, this is common. And it can lead to serious problems for managers, as they struggle to motivate frustrated, indifferent, uncooperative, or unproductive team members.

Dr David Sirota, an organizational researcher and consultant, conducted research into ways of motivating employees. His work was based on surveys from over four million workers around the world – as well as focus groups, interviews, case studies, and informal observations. Most prominently laid out in his 2005 book, The Enthusiastic Employee, he concluded that the way to enthuse workers is to give them what they want. So what is it?

What Is Sirota's Three-Factor Theory?

Sirota's Three-Factor Theory of Human Motivation in the Workplace is based on three fundamental principles:

  1. The organization's goals are not in conflict with the workers' goals.
  2. Workers have basic needs that organizations should try to meet.
  3. Staff enthusiasm is a source of competitive advantage.


To understand and appreciate Sirota's theory, it's important to recognize the starting point: that most people start a new job with high levels of motivation and enthusiasm, and that they generally want to enjoy what they do. He argues that this natural state of motivation is then reduced, over time, by bad practices and poor conditions within the company.

The three factors, which together build enthusiasm, are as follows:

  1. Equity/Fairness – People want to be treated fairly at work.
  2. Achievement – People want to do important, useful work, and be recognized for it.
  3. Camaraderie – People want to enjoy good relationships with their co-workers.

Factor 1: Equity/Fairness

People are motivated by fair treatment, and they want their company to provide basic conditions that respect their physiological, economic, and psychological needs.

Sirota's surveys included questions about physical working conditions, job security, the amount of work expected, compensation, communication, favoritism, and the consistency of management's actions and words.


The equity factor is very similar to the hygiene factors described by Frederick Herzberg in his Motivation-Hygiene Theory.

According to Sirota, to ensure that your organization demonstrates equity, you need to address all of the following fairness elements:

1. Physiological Safety

Ensure the physical safety of workers.

  • Create safe working conditions.
  • Establish expectations that give your staff a reasonable work/life balance.
  • Make sure you meet all workplace safety requirements.
  • Provide safety training on a regular basis.

2. Economic Security

Provide a reasonable level of job security.

  • Consider all possible alternatives before laying off workers.
  • Ask for voluntary layoffs when a layoff is inevitable.
  • Communicate openly and honestly about the layoff.
  • Provide outplacement and financial support for staff who have lost their jobs.
  • Maintain the fairness needs of the workers who remain.

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3. Provide Fair Compensation

  • Pay competitive wages, and keep up with inflation.
  • Include some variable pay (bonuses) for performance.
  • Allow workers to share in company success through stock ownership or other profit-sharing programs.


Sirota's theory is strong on compensation. He doesn't believe (as some others do) that money is low on the list of motivating factors. His theory says that pay represents respect and achievement, not just the ability to purchase life's necessities.

4. Psychological Health

Create an environment of respect.

  • Treat all staff similarly, regardless of how much power they have.
  • Use power fairly.
  • Minimize status distinctions in the workplace – for example, by avoiding separate parking lots or eating areas.
  • Provide sufficient and appropriate autonomy and independent work.
  • Pay attention to what staff say they want and need. (Management By Wandering Around is an effective way to stay in touch with people's needs.
  • Provide positive feedback and recognition.
  • Show interest in your people, and insist on common courtesy.

Factor 2: Achievement

People want to be proud of their work, and they want their achievements to be acknowledged. They also want to feel proud of what the organization as a whole achieves.

Sirota asked workers questions about the amount and type of feedback they received, how participative their work environment was, whether adequate resources were provided, and how proud they were of their company.

To help people feel this sense of achievement, an organization needs to do four things:

1. Provide an Enabling Work Environment

Give people what they need to do the job well.

2. Provide Challenging Work

Allow people to do interesting work that uses their skills and abilities.

  • Hire people based on fit.
  • Design jobs for enrichment and satisfaction.
  • Communicate how each job contributes to the company as a whole.
  • Provide training, and opportunities for people to learn new skills.

3. Use Feedback, Recognition, and Reward

Let people know how they're doing.

  • Communicate clear expectations.
  • Establish and agree on priorities.
  • Use tangible rewards to acknowledge achievement.
  • Balance criticism with plenty of praise.
  • Promote from within where possible.

Read more about giving feedback.

4. Be an Organization of Purpose and Principles

People want to work for trustworthy companies that they can be proud of.

  • Create a vision that can make workers proud.
  • Communicate the principles of the company.
  • "Walk the talk."
  • Adopt and apply ethical leadership.
  • Provide a quality product or service, and use quality management practices.

Factor 3: Camaraderie

When people go to work, they want to enjoy themselves. That makes interpersonal relationships very important. A culture that supports and encourages cooperation, communication, friendliness, acceptance, and teamwork is critical for maintaining enthusiasm. As such, partnership needs to be an important part of company culture.

Partnership Culture

Workers want to feel a sense of community and teamwork.

  • Make "people skills" a priority. Demonstrate empathy, consideration, and respect – and expect the same from every worker.
  • Encourage interactions, and provide social opportunities.
  • Reward positive team behaviors.
  • Encourage cross-functional interaction and teamwork.
  • Review department mandates and practices regularly to ensure consistency in the approach and message.
  • Use team charters to develop ground rules.
  • Use collaborative conflict resolution and win-win negotiation techniques to resolve differences.

By creating an environment that addresses all three factors for enthusiasm, you can better ensure high satisfaction, motivation, and productivity. However, these factors are not independent of one another: You can't ignore compensation needs and expect to make up for it with increased camaraderie. Likewise, you can't allow a manager to treat her staff poorly, even though you provide high achievement elements.

Copyright © 2005. David Sirota, Louis A. Mischkind & Michael I. Meltzer "The Enthusiastic Employee: How Companies Profit by Giving Workers What They Want." Terms reprinted by permission of Pearson Education, Inc., New York.


One of Sirota's findings is that the equity elements are most fundamental, and you must address them before adding other enthusiasm factors.

Key Points

Enthusiasm, as a measure of worker motivation and productivity, is central to Sirota's Three-Factor Theory.

Rather than believing that you somehow have to motivate people to do work, this theory assumes that everyone starts out motivated – but then other things happen, or don't happen, that reduce this natural motivation.

To rebuild worker enthusiasm, leaders and managers must create an environment, and supporting practices, that deliver high levels of equity, achievement, and camaraderie. When people are treated fairly, are proud of the work they do, and do it with people they like, then enthusiasm grows – along with morale and productivity.

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Comments (15)
  • Over a month ago BillT wrote
    Hi taylorpriddo,

    Thank you for your question. Sirota's theory has the intent and purpose of providing enthusiasm in workers, who would then feel positive about the work they do and their workplace. In theory, I see this as a positive strategy. The challenge I see in applying the theory, particularly for managers, is being able to maintain their own enthusiasm to then motivate employees.

    Mind Tools Team
  • Over a month ago taylorpriddo wrote
    Has anyone thought what implications could arise when using sirotas theory?
  • Over a month ago Michele wrote
    Hi Arnoldas,

    Thank you for the feedback and we hope that you are able to apply the principles behind Sirota's Three-Factor Theory to increase motivation in your workplace.

    Mind Tools Team
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