TheTwo-Factor Hygiene Theory, developed byFrederick Herzberg, explains what drives employee satisfaction and dissatisfaction at work. Herzberg argued that there are two categories of factors that affect motivation.

The first category isHygiene Factors. These are extrinsic elements such as pay, working conditions, company policies, job security and supervision. If these are poor or absent, employees become dissatisfied. However, their presence alone does not create motivation – they simply prevent dissatisfaction. For example, in procurement, if buyers do not have fair pay or adequate systems, they will feel frustrated, but improving pay alone will not guarantee enthusiasm or creativity.

The second category isMotivators. These are intrinsic to the job itself, such as achievement, recognition, responsibility, advancement, and personal growth. When present, these factors actively increase motivation and job satisfaction. For instance, giving a procurement professional ownership of a supplier relationship, recognising their success in a negotiation, or offering training opportunities can significantly boost motivation.

The impact of Herzberg’s theory on motivation is significant. Managers cannot rely only on hygiene factors like pay and working conditions to motivate staff. These need to be in place to avoid dissatisfaction, but true motivation comes from providing meaningful work, opportunities for growth, and recognition.

In practice, this means managers should:

Ensure hygiene factors are adequate (fair pay, safe environment, supportive policies).

Focus on motivators such as giving responsibility, offering progression pathways, and recognising achievement.

Design jobs with variety and challenge, rather than only repetitive tasks.

Encourage intrinsic motivation through empowerment and involvement in decision-making.

In procurement and supply, applying Herzberg’s theory could mean ensuring staff have reliable systems and clear processes (hygiene), while also providing opportunities to lead supplier negotiations, recognise cost savings achievements, or involve staff in strategic sourcing projects (motivators).

In conclusion, Herzberg’s Two-Factor Theory shows that avoiding dissatisfaction through hygiene factors is not enough. Managers must also provide motivators to create true engagement and drive performance. For procurement leaders, balancing both sets of factors is essential for building high-performing, motivated teams.