You can use a number of methodologies to motivate your employees such as:
- Verbal appreciation
- Performance awards
- Employee of the month award
- fringe benefits
- vacations
- performance based bonus

 There are many ways. Employee recognition contests [employee of the week, month, day, year. Positive reinforcement, let them know when they are doing a good job. Plan one of those teamwork survival camps, recognize accomplishments at employee meetings. Give out employee incentives, shirts with logos or little plaques, to employees who improve their performance, etc...

 I'd give them recognition and praise where it's due. It does wonders. Also constructive criticism is needed at times.

 I don't think a person can motivate another person to do or be anything, but can only provide the incentives for them to become self-motivated.

I would tend to land on the side of understanding what is important to the employee-- using many of the methods suggested in other answers here while taking into account what the individual values and what his/her view of the world looks like, in conjunction what I am trying to inspire the person to do or be. One method doesn't work for any one individual, and what works sometimes with an individual may not always work, depending on where they are in their own development and circumstance.

I have found what works best is to take the time to really understand an individual's personal motivators by asking and observing. People tend to have a tough time with the question: "what motivates you", but people are extremely obvious about what doesn't motivate them, in both actions and in word. For example, if I observe that an employee is obviously irritated when deadlines are missed, I understand that timeliness and honoring deadlines is important to that person and thus, being timely and honoring their deadlines motivates this person. If I hear someone say--"wow, I wish I could have lead that task ", I understand they may be motivated by similar opportunities for additional responsibility. If someone is heard to say "Gee, it would have been helpful to know ahead of time what I was doing right and wrong with the project", I understand that providing feedback on performance is a definite motivator for that individual. And if I hear a group complaining about having to attend or dragging their feet on work-related social interactions or events, I need to understand that even though those events may seem important and motivating to me, they are likely not seen as great motivators by those doing the complaining or foot dragging.

Listen and get to know your employees and watch for these clues. Then choose the method based on the knowledge of these individuals, tyring to create opportunities to supply these things as motivators. We as individuals are differently motivated, and we must acknowledge that by understanding the differences when trying to inspire someone toward a goal or action.

 There are so many ways on how are you going to motivate your employees. Let me name some of them:

* let them realize that they are part of the company, they are not only employees.
* always keep in touch with them, if you just have a small business, then you could eat with them or if you have a very large business, you could make a website where in they would be able to express what they really want, this would motivate them because they would realize that they are really important to the company.
* give some incentives, promotions, salary increase (if you can), some benefits etc.
* you could also try to develop your workplace into a more employee-friendly workplace.
* always involve your employees on any decision that they you might make

gud luck! (^_^)

 Since they are the ones doing the job getting them involved by letting them help with the solution.
Make them feel important.

 I think simply by appreciating their work and having confidence on them , make them feel they r reliable...and give them relaxation at the time of there difficulty i can confidently say that if you do all the above you will notice the improvements within days because I'm employee
and my work and progress has been improved after such attitude shown by my boss mention above.