In the article, analyzes the strategic role of employee motivation in enhancing labor productivity and the effective mechanisms for its implementation. The study shows that when financial and non-financial incentives, a fair evaluation system, opportunities for professional development, and a positive psychological environment are applied in a balanced manner, employees’ responsibility, loyalty, and creativity increase. As a result, the organization’s labor productivity, innovative activity, and competitiveness improve significantly. This approach demonstrates an effective model for applying motivation not merely as an incentive but as a strategic management tool.