Herzberg's Two-Factor Theory in Project Management

What is a proven way to keep your project team motivated and happy? One of the most popular approaches is Herzberg's two-factor theory. This concept puts forward two factors that motivate employees: job satisfaction and job dissatisfaction.

While these might seem like opposites, they work together in a cycle. For example, when an employee is unhappy with their job, they may exhibit low performance or consider quitting the company.

On the other hand, satisfied employees feel content with their work, perform better, and stick with the company for longer.

In this blog, we will explain what is two-factor theory and how you can apply it for project management success.

What is the two-factor theory?

The two-factor theory is a concept that states the factors that affect an individual's satisfaction and motivation level . These two factors are:

When American psychologist Frederick Irving Herzberg developed this theory in 1968, it quickly became the most requested article in the Harvard Business Review. Herzberg believed that these two factors impacted employees' performance in different ways.

Both effective and motivational factors tend to influence people differently. Even as an individual is satisfied with their role, they may not be motivated enough to work towards their goals.

Let’s see how project managers can put this theory to work to ensure higher employee morale and improved productivity.

Example of the two-factor theory

Ever faced a situation where project team members are not pulling their weight? Have they stopped following project workflows, or are they lagging behind schedule?

According to Herzberg’s two-factor theory, this can be fixed by considering what motivates the team members. Simply put, people will act out when they feel like something is missing (i.e., dissatisfaction) or when they feel good about themselves (i.e., recognition).

If you want them to stop acting out, then it may be time to look at how well their needs are being met by the company.

Hygiene factors

Hygiene factors are the elements of a job that satisfy basic needs: security, pay, fairness, and working conditions. When these needs are met, employees feel comfortable and satisfied with their roles. Here are some examples of hygiene factors:

Herzberg motivators

Motivational factors are the key job elements that motivate people to stay and grow in a role. When these needs are not fulfilled, the project team may become dissatisfied with their jobs. They may want more challenging roles that allow them to grow professionally, learn new skills, or manage greater responsibilities.

Here are a few examples of motivators as per Herzberg’s two-factor theory:

Why is Herzberg's two-factor theory important in project management?

Poorly-trained project managers lead to project failure in more than 30% of projects . When the organization is racing to complete projects on time and within budget, having a supportive and fully motivated team can be a huge boon.

As per a recent Salesforce report, more than 86% of executives cited ineffective teamwork as a major reason for project failure.

Motivating employees is a key aspect of project management. In project management, smooth teamwork helps achieve three vital goals:

Herzberg's two-factor theory provides an insight into key elements that encourage employees. It can be used to understand the motivations of individual employees that can in turn be utilized to craft a holistic employee motivation plan.

By boosting the motivation levels of smaller teams, an encouraging and positive work environment can be created, thus improving the likelihood of project success.

Here are the key benefits of using Herzberg's two-factor theory in project management:

Advantages of Herzberg’s two-factor theory in project management

Implementing Herzberg’s two-factor theory can drive project success. Research from Gallup shows that companies with highly engaged teams have 21% higher profitability. This confirms that employee motivation is not just a buzzword but a solid concept that drives real business results.

Let’s review the potential benefits that can be achieved by making team motivation central to an organization’s project management strategy:

How to use Herzberg's theory in project management

How can the two-factor theory be applied to managing project teams? Even as external factors such as pay and benefits motivate employees, other drivers such as prestige and reputation are key. Here’s a step by step guide to using Herzberg's two-factor theory in project management :

Identify the motivators

Identify the factors that make your employees either happy or dissatisfied with their work. Use a questionnaire to get to know their needs and wants. Find out if any particular motivators or hygiene factors could be improved upon within your company. If so, determine what can be done to improve these factors.

Conduct simple polls, online employee surveys, or individual discussions to find out what teams want. Here are a few questions that can help:

Review and let go

After reviewing the satisfaction factors, find ways to eliminate dissatisfying factors in their work. For example, if people want more feedback from managers, establish a more frequent review cycle that includes regular project progress updates from the manager.

Measure it all

A quantitative method of measuring team satisfaction can also be used, such as:

Keep it aligned

Communicate project progress and showcase team contributions to it. If some team members think that their ideas and contributions are not being recognized, meet them and let them know that their opinions are valued.

Get clarity

Certain factors can be measured with reference to Herzberg's two-factor theory of motivation. For example, money is a hygiene factor for employees — it keeps them satisfied with their jobs but it doesn’t always inspire them to be creative or improve themselves.

By using the two-factor theory, project managers can better understand which factors might motivate their employees. Try to consider what the majority of the team wants and make it available.

Align motivators with project goals

Once you understand the factors that motivate your employees, it is important to find ways of aligning these motivators with the project's goals.

For example, if people are happy with their work, they will remain productive and satisfied. However, if there is no connection between an individual's goals and contributions to the project, they may become demotivated and end up adversely affecting team productivity.

Disadvantages of Herzberg's two-factor theory in project management

Herzberg’s two-factor theory is not without its downsides. Keep an eye out for these disadvantages of the two-factor theory:

How to facilitate workplace satisfaction using UDN Task Manager

Hertzberg’s two-factor theory is an effective way to keep project teams motivated and engaged as they work together on project goals. Keep them on the same page by using a cloud-based project management tool such as UDN Task Manager .

Communication is essential for successful project delivery, and UDN Task Manager allows for efficient team communication to achieve exactly that. 88% of employees report having unclear communications with their team. UDN Task Manager allows you to quickly share progress on company-wide projects using customizable status reports.

UDN Task Manager makes collaboration easy, eliminating unnecessary email threads so your teams can get work done more efficiently. Using a single unified hub for all communication also adds visibility to project progress, so employees can see and be proud of their teamwork.

Streamline project workflows, ensure on-time deliveries, and leverage real-time team communication by using UDN Task Manager to manage your projects. Start a free two-week trial of UDN Task Manager and see how you can apply Hertzberg’s two-factor theory for project management success.