You should hire as much for attitude as you do for aptitude. Take your time in hiring and have the courage to get rid of the difficult people in your organization who are toxic and unwilling to be on the team. Equally important to understand is that you generally have to play with the hand you're dealt with and values-training courses should be a compulsory training program for the employees who were with the organization when you arrived. With proper leadership and training, most people will change over time. Keep Jobs Challenging and Interesting Challenging work is the number one requirement for job satisfaction and close behind is interesting work.
Nothing demotivates people faster than lack of a challenge.
Another major reason for demotivation is not knowing what's expected of you. People need clear goals and high standards in order to feel like the winners they were born to be. Demand excellence from yourself and from others and stop accepting mediocrity. Involve the Employee Pride of ownership is a most compelling motivator. Manage By Exception Wherever possible, stay clear of the tasks assigned, other than to continue to encourage and coach the employee.