Motivation is the influence which attracts, directs and maintains desired behavior of people. Motivation plays a very important role because by motivating managers try to fulfill desires and urges of its employees so that their behavior would be acceptable and desirable in their organization. Often, the question is how to motivate employees so they can contribute to the better functioning of an organization. Motivation is the key for a high standard of doing business, for inspiring creativity, imagination, and innovativeness, for a professional development of employees and their loyalty to the company. There are various forms of rewarding employees which can be divided into material and non-material rewards (tangible and intangible). Salary has been considered the main motivation to employees, but nowadays non-material rewards are getting more relevance. Once the existential needs are settled with money, people develop different needs in their work environment such as respect from others. That is the reason why non-material rewarding is important, it consists of a range of motivational mechanisms such as career development, job design, flexible working hours, work from home and etc. The paper consists of two parts. First part covers the theory and definitions of terms the motive and the motivation. After that is explained the meaning of rewarding and distribution of material and non-material compensations. First part also discusses the importance of measuring employee motivation and satisfaction and the methods and technics how measurements are conducted. In the second part of the paper through empirical research we will show the general employee motivation of employees in firm Dergez d.o.o.