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The motivation logic calculates a motivation index based on the relative salary level, job security and training level of employees. Staff turnover rate is in turn influenced by the motivation level of staff.
Salary level is compared to an industry average of $25,000 and smoothed over several years.
Job security is reduced during downsizing, but is also smoothed over several years.
Including the training/skill level reflects the fact that employees are looking for more than salary and job security. They are looking for a job where they are learning and working with other highly-skilled people.
The graph below shows the motivation index achieved by changing the firm's average salary from $25,000. The effect would be increased by sustaining the salary change across succeeding years.
The graph below shows the effect of job cuts on morale and staff turnover.
