How to properly motivate employees
- Introduction
Employees play a major role in determining the success of a business especially since they are the major point of contact between the company and its customers. Through employee and customer interactions, the organization is able to collect information regarding the products and services they offer, their reception by the target audience, what improvements need to be made and also what new products and services the business can offer to its target audience. As such, it is important for businesses to ensure that the needs of the employees are met; that employees are motivated; and that employees understand the importance they play in helping meet the organizational goals and objectives. Although organizations do try to implement policies and strategies aimed at creating an ideal working environment for employees, the right policy could have a negative impact on a business especially if itis not implemented well and this is the case with Flash.
- Statement of the problem
The advertising agency has already identified the problem which lies in employee dissatisfaction with the organization especially in involving the members of staff and making them feel as part of a team. The company experiences a great deal of employee turnover as employees keep leaving the company for other employment opportunities. Even with the implementation of a new reward system, employees that leave the organization often state not being included of that they did not feel as part of the team as the reason behind their decision to work elsewhere. The growing employee turnover shows that, while giving incentives and compensation to employees are good motivators, the way in which the policies are implemented need to be approached in such a way that the employees’ needs are met and that the incentives given directly target what the employees feel is lacking[1]. Similar to how a business identifies its customers’ needs and delivers a product or service to meet these exact needs, so should the businesses approach in determining how to go about motivating employees and giving them incentives.
The major cause for the failure in the new reward scheme in its attempt to make employees feel included is because it only offers financial compensation for any achievements made. As indicated in the reward scheme, employees are offered a bonus of up to three percent of their salary for the role they play in helping the company achieve its profit target margin as well as the chance to get about 25% of their salary for those in the development team if they are able to surpass their sales target[2]. Although employees appreciate salary increments and bonuses, people also have the urge to work in an environment where their contribution is appreciated and this is something that is lacking from Flash. The monetary incentives only acknowledges people for the work they do but is greatly limited in making the employees feel included or as part of a team. The company must therefore come up with better ways to motivate employees and earn their loyalty so as to reduce the staff turnover at the organization.
- Potential consequences
If Flash is unable to resolve the challenges experienced within the organization, it is likely to experience delays in achieving the objectives it is set out to meet. An example is the company’s goal to have grown tremendously in a period of three years to a point where it creates more business through new clients. Although the business has the potential, the employee turnover will make growth difficult as constantly replacing employees will slow down progress and further affect creativity. The goal to attract new clients could also be hindered as the products needed to attract new customers may get stuck in the production or idea generation phase if all the creative talent keeps moving to seek employment elsewhere[3]. The business will not only loose its employees but also the creative ideas that could bring about the success being sought after. It is therefore crucial for the business to find a way to remedy the situation in order to overcome the threats posed by lack of a proper reward system at Flash.
- Recommended action to remedy the situation
If Flash is to overcome the challenges it faces, it must revisit the strategies used in the reward scheme and try to come with better and more efficient ways to reward its employees. To begin with, Flash needs to review the reward scheme such that it gives more than monetary compensation to employees for their hard work. While a salary increase does make the employee richer, it in no ways makes the job less easy, nor does it improve the working environment[4]. The reward scheme should therefore focus on other areas that could be improved such as the working environment, communication within the organization, teamwork and other factors that could improve the working experience. Instead of just giving financial compensation, the reward scheme should focus on making life easier for the employees as they perform their duties and try to meet the company objectives.
The first step that Flash needs to take is to reduce the employee turnover rates within the organization. Majority of the employees that have left the organization claim that they were not included and did not feel as part of a team. The negative attitude that employees have may be attributed to the fact that financial gain is the major form of compensation within the organization[5]. Although additional money is always appreciated, employees crave more forms of fulfilment such as the promise for career growth as well as working in an organization where one feels like they belong. The reward system must therefore be restructured to target other psychological rewards that employees crave in relation to their intrinsic and social needs.
- Extrinsic rewards
The new reward scheme made attempts to compensate employees for helping the company make profits by giving them monetary awards of up to three percent of their salary. While the compensation is ideal, the limitation creates the idea that the appreciation is only to some extent. There is also the issue where the money is issued three months after the financial year which could come off as a delay in the businesses fulfillment of its promise[6]. Since the reward is for profits that the business has already reported, the bonuses should be given earlier to show that the business acts just as fast to satisfy its employees as it does with its customers[7]. The business further manages to lead by example by showing the employees how to take swift action not just when receiving but also when serving others.
Lastly, the company should change its policy of offering different reward systems for different departments for profits made since meeting the company objectives involves all departments. The policy to bonus scheme to reward employees in the development departments when they surpass their sales targets alienates the development team from others that do not get the bonus package[8]. Other departments may feel like their less important or that another department is favored and this could cause disunity and therefore cause a higher employee turnover. Disunity amongst employees and departments greatly damages unity in an organization. The company should therefore treat employees as equals when issuing bonuses and ensure that they are given in a timely schedule[9]. Enhancing unity among departments will create a better working environment and this will greatly help in meeting the set objectives.
- Intrinsic rewards
The new reward scheme should also try to satisfy more than its employees’ monetary interests by addressing their work related needs. The level of satisfaction with one’s job can be a great motivator and Flash should try and identify ways in which it can make the working environment more interesting. At present, the employees find it easy to leave the company because they are either not satisfied with their working environments or do not see any room for personal growth[10]. Employees seek more than just a salary especially in jobs that require creativity and teamwork. Being in the field of advertising, Flash has employees who constantly seek to improve their skills as this is a requirement in their field of work. If employees are not motivated or feel as if their input is neither appreciated nor encouraged, they are more likely to find better opportunities elsewhere and this greatly contributes to the high staff turnover[11]. The business should therefore come up with ways for appreciating employees’ input in helping to successfully meet the company objectives.
One way to achieve this is by involving employees in the decision making process. Seeking employee input has its advantages as it gets more than one individual working on the same task. While decision making should be left to the management, involving employees in other stages of the decision making will make them feel part of the process and therefore give them a purpose[12]. Employees are more likely to be satisfied with their jobs as they will see the role they play in making the business a success. Since their loyalty will be tied to the company and the input they give, the staff turnover is likely to go down as employees are less likely to leave an organization they have an active role in building and running[13]. Job promotions, bonuses based on personal achievements as well as team effort and other acknowledgements such as employee of the month awards are some of the reward systems that could be used to increase employee satisfaction with their jobs, raising their interests and the promise of personal growth.
- Social rewards
The business further needs to address its employees personal needs such as creating an environment where colleagues are friends as well as job positions that give them some form of status. Human beings have the desire to belong and function in a community[14]. Their belongingness is structured around their success into fitting into a community with its own norms and expectations. Since work is one of the requirements of adults in a community, a career that gives someone status and a sense of respect within society is likely to have higher employee satisfaction. Flash should therefore use promotions and acknowledgement as other forms of motivation. Organizing team retreats and outings can be used as a way of rewarding employees for the work they perform. Instead of just waiting until the company makes profits, the business could take employees on outdoor activities and team building events as a tool to break monotony in the workplace[15]. The activities will also build positive relationships among the employees and this will greatly improve group dynamics and communication within the organization. Employees are also less likely to seek employment elsewhere if they feel as part of a family and this will further reduce the employee turnover rates at Flash.
- Expectancy theory
The implementation of the new reward scheme should be in line with the expectancy theory. The theory operates by linking the rewards that the employees get with the effort they put in when performing their duties[16]. The approach is ideal in that it convinces employees that whatever targets they are expected to meet are not only achievable; but that fulfilling them results into some form of rewards. Since the goal is to improve performance, making the set rewards desirable will push employees to perform better and look out for the best interests of the organization. The desire for meeting the target will not only be fueled by the desire to attain the rewards associated wit[17]h some specific achievement, but also because the employees feel as part of a team and are therefore determined to achieve success.
- Conclusion
The challenges that Flash is facing are related to its inability to create an ideal working environment for its employees. The company places a lot of emphasis on anticipating customer needs and finding a way to satisfy them through its products and services. Its ability in anticipating its customers’ needs is however limited as the reward scheme implemented only sought to give monetary compensation for the role employees play in achieving the success experienced by the company. If it shifts its focus from monetary to personal achievements, there is a high likelihood that customers will be more satisfied with their jobs and that they are more committed to meeting the set objectives. It is therefore important for the business to create an ideal working environment and ensure that employees’ personal goals are met as well as the organizational goals.
References
ARMSTRONG, M. (2019) Handbook of employee reward management practice: improving performance through reward. 6th edition. London
ARMSTRONG, M. and CUMMINS A. (2015) The reward management tool”
FISHER J.G. (2015) Strategic reward & recognition: improving employee performance through nonmonetary incentives. London
Fox K and O’Connor J, (2015) “Five ways work will change in the future” The Guardian, retrieved from, https://www.theguardian.com/society/2015/nov/29/five-ways-work-will- change-future-of-workplace-ai-cloud-retirement-remote
Green A, (2018)”Ask a manager: How to navigate clueless colleagues, lunch stealing bosses and other tricky situations at work” Little Brown Book Group, print
Hamel G, (2006) “The why, what, and how of management innovation” Harvard Business Review, retrieved from, https://hbr.org/2006/02/the-why-what-and-how-of- management-innovation
KATZENBACH, J. R., & SMITH, D. K. (20073). The wisdom of teams: creating the high- performance organization. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db =nlabk&AN=1798655.
KOONTZ, H., WEIHRICH, H., & WEIHRICH, H. (2007). Essentials of management: an international perspective. New Delhi, Tata McGraw-Hill.
Korkki P, (2019) “How to make the most of your workday” The New York Times, retrieved from, https://www.nytimes.com/guides/business/how-to-improve-your-productivity-at-work
Martin M, (2018) “12 secrets to keeping employees happy without a raise” Business News Daily, retrieved from, https://www.businessnewsdaily.com/6084-employee-happiness-without- raise.html
N.a,(2019), “Getting the new reward scheme right: Flash report”
Nicassio F, (: Seven proven ways to boost employee 2019) “Motivating retail associates morale and performance” retrieved from, https://www.vendhq.com/blog/5-proven-ways-boost- employee-morale-increase-productivity-drive-sales/
PERKINS, S. J. and WHITE, G. (2016) Employee reward: alternatives, consequences and contexts, 3rd edition. London: CIPD
Ponsoby R, (2019) “Seven reasons for employee motivation” London School of Science and Technology, retrieved from, https://www.lsst.ac/blogs/seven-reasons-for- employee-motivation/
ROBINSON, D., PERRYMAN, S., & HAYDAY, S. (2004). The drivers of employee engagement. Brighton, Institute for Employment Studies.
Rose, M. (2018) Reward Management: A Practical Introduction, CIPD, London
[1] ARMSTRONG, M. (2019) Handbook of employee reward management practice: improving performance through reward. 6th edition. London
[2] N.a,(2019), “Getting the new reward scheme right: Flash report”
[3] ARMSTRONG, M. and CUMMINS A. (2015) The reward management tool”
[4] Martin M, (2018) “12 secrets to keeping employees happy without a raise” Business News Daily,
[5] Nicassio F, (: Seven proven ways to boost employee 2019) “Motivating retail associates morale and performance”
[6] N.a,(2019), “Getting the new reward scheme right: Flash report”
[7] Korkki P, (2019) “How to make the most of your workday” The New York Times
[8] Fox K and O’Connor J, (2015) “Five ways work will change in the future” The Guardian,
[9] FISHER J.G. (2015) Strategic reward & recognition: improving employee performance through nonmonetary incentives. London
[10] Green A, (2018)”Ask a manager: How to navigate clueless colleagues, lunch stealing bosses and other tricky situations at work” Little Brown Book Group, print
[11] KATZENBACH, J. R., & SMITH, D. K. (2007). The wisdom of teams: creating the high-performance organization.
[12] ROBINSON, D., PERRYMAN, S., & HAYDAY, S. (2004). The drivers of employee engagement. Brighton, Institute for Employment Studies.
[13] Hamel G, (2006) “The why, what, and how of management innovation” Harvard Business Review,
[14] PERKINS, S. J. and WHITE, G. (2016) Employee reward: alternatives, consequences and contexts, 3rd edition. London: CIPD
[15] Rose, M. (2018) Reward Management: A Practical Introduction, CIPD, London
[16] KOONTZ, H., WEIHRICH, H., & WEIHRICH, H. (2007). Essentials of management: an international perspective. New Delhi, Tata McGraw-Hill.
[17] Ponsoby R, (2019) “Seven reasons for employee motivation” London School of Science and Technology,
