Expectancy theory says employees are motivated when they believe they can accomplish a task. Based on Victor Vroom’s formula for motivation, three important variables determine motivation. Expectancy refers to the person’s perception of their ability (probability) to accomplish an objective. Generally, the higher one’s expectancy, the better the chance for motivation.

Instrumentality refers to the perception of the relationship between performance and the outcome/reward that will actually be gained. Valence refers to the value a person places on the outcome. Generally, the higher the value (importance) of the outcome, the better the chance of motivation. Are you motivated to apply for a minimum-wage job? Clearly define objectives and the performance needed to achieve them.

Tie performance to rewards. High performers should be rewarded more than low performers. Be sure rewards have value to employees. Get to know employees as individuals. Letting employees speak about the rewards they want and giving them results in higher levels of motivation and performance. Make sure employees believe that you will do what you say you will.