Employee motivation is one of the key responsibilities of the human resources management. This article will present and analyze the basic concepts, related to staff motivation - motif, motivational process, needs, and reward packages to motivate employees. The basic needs of the personnel and the incentives in the compilation of motivational package in the organization are defined and classified. In order to motivate the staff and reduce the turnover in the organization it differentiates the costs for hiring a new employees and the cost of retaining existing employees. The ratio is compared in order to justify the cost of investing to stimulate and motivate experienced and loyal to the company’s staff.
