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Importance of Employee Motivation and Workforce Engagement

9333 Downloads1 I Published: 19 Apr ,2017

What Is Workforce Engagement?

Managing Workforce Engagement and commitment is linked with the ways that helps organization to manage its employees and they work with full motivation in the workplace. Management develops various strategies in order to retain its employees so that productivity can be increased and firm can easily achieve its targeted objectives (Bishop, 2005). The report embarks on the link between total reward and organizational performance. Further, the reward concept and the related strategy will aid in augmenting the individual and organizational performance. Strategical advantages are also discussed so as to have a clear idea. In the last, this report focuses on the system of total reward and how it directly improves the performance of business enterprise by selecting appropriate reward strategy and policy.

Link Between Total Reward And Organisational Performance

Total reward involves all the tools and techniques available to the employer with the help of which employees can be retained and motivated. It takes into consideration everything that staff members consider to be of value resulting from the employment relationship (Macaulay and Cook, 2001). Basically, there are five elements of total element which are compensation, benefits, work life, performance and recognition, development and career opportunities. All these elements show the tool kit which firm chooses to offer and align a value. According to Andova, Hermanns and Katoen, (2004) total reward directly increases motivation level of employees and increases their ability to perform efficiently (Allen and Kilmann, 2001) whereas it helps organization to improve its performance as employees work for its welfare and increases productivity. In order to motivate employees, rewards should be in the form of both monetary and non-monetary as both are effective and increases motivation level of employees.

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According to author, percentage of monetary rewards must be more as compared with non-monetary in the total rewards. According to Rogers et al (2003) total rewards directly helps organization to gain competitive advantage as they are very effective. It is necessary for manager to determine the appropriate mix of elements in total rewards like compensation, benefits, work life, performance must be balanced and used in equal proportion so that needs of employees can be satisfied easily and firm can improve its performance (Imbun, 2003). As per view of author, non-monetary rewards must be used more rather than monetary as they are more effective and money is not sufficient to satisfy need of staff members. This theory is less effective as compared with previous one as employees are directly attracted towards the rewards which are in monetary form and they take initiatives in order to improve their personal performance (Parkins and White, 2008). Compensation plays important role in the model of total reward as in case if company provides fair compensation to the staff members in accordance with their work then they will be highly motivated and this will improve the performance of the business enterprise. Benefits takes into consideration the additional advantage that organization provides to its employees like house, car and lunch facility etc so this directly acts as strong motivational tool.

Work life is linked with the environment that company provides to employees so that they can work efficiently. Fair environment is present when discrimination is not present and other unethical practices that reduce motivation level (Armstrong, 2010). Next element in total reward is performance and recognition where work done by every staff member is analyzed thoroughly and they are appraised for the work done. But on the other hand, some employees do not prefer that their work is evaluated and they are demotivated. So, rewards are given on the basis of performance and acts as development tool as all the employees focuses on improving their performance. Development and career opportunities is the last element which shows that firm provides ample of opportunities to the staff members so that they can learn new things and can implement it within the workplace. So, it will help organization to gain competitive advantage and performance can be improved directly. All these elements plays most important role in the total reward and leads to employee satisfaction and engagement (Armstrong and Murlis, 2007).

How individual and organizational performance can be improved by reward strategy

In every organization, reward strategy plays most important role as it increases efficiency of the employees and they can work with full motivation. According to Parkins and White (2008) reward given to employees acts as initiator and it encourages them to work for the betterment of firm. A company like Tesco provides reward in the monetary form that acts as motivator and helps the firm to its performance as all the staff member works to achieve one common goals and objectives (Andova et al, 2004). Whereas Ford management provides reward in the non-monetary form that also encourages employees but they are less effective and do not encourage them for the welfare of organization. This directly affects the performance of the firm and company is not able to achieve the targets set.

According to Armstrong (2010) it is necessary for firms to design appropriate reward strategy keeping in view the needs and desires of their staff members. When reward is in monetary form then performance of individual easily increases as they compete with each other in order to get the reward and has impact on performance. Employees are highly motivated when they are given additional benefits for the work done and it is considered one of the best ways to retain the existing employees working in organization and new one can be grabbed easily. On the other hand, when non-monetary rewards are used by management like health benefits, paid time off like holidays etc (Rogers and et. al. 2003), they are less effective as compared with monetary rewards. In Google, reward is given to employees on the basis of performance and company has developed monetary plan for its staff members. So, it directly helps to improve organizational as well as individual performance as staff members compete with each other and this helps firm to beat its major competitors.

Firm that relies less on reward strategy is never able to achieve its targeted objectives as the most valuable resource of firm i.e. employees are not satisfied with their job and are highly demotivated. It is necessary for firms to design appropriate reward strategy through which employees can be encouraged to work for the welfare of enterprise. According to Armstrong and Murlis (2007) reward is directly linked with performance of individual and entire organization as when employees are provided monetary benefits then they will surely work for the attainment of objectives which will help management as company to easily become leader in the market (Bishop, 2005). Employees working in organization belong to different caste and religion due to which their taste and preference differs. But rewards directly motivate every staff member and in turn lead to improvement in performance.

Motivation

Motivation plays an important role in organisation and it is used by management so that staff members can work efficiently and helps in achieving the targeted objectives. Every organization develops different strategies so that staff members can be encouraged to work for the welfare of business enterprise and supports in every manner (Lauby, 2005). Various motivational theories are present like content and process which focuses on the factors that motivates the workforce in company. Present report focuses on the factors that motivate employees and different theories like process, content etc. It will be determined whether money motivates staff members or not.

Theories Of Motivation

Different theories of motivation are present that directly helps organization to manage its workforce and it becomes easy to achieve the targeted objectives. Content theory of motivation is used by Tesco which helps in knowing why needs and wants of human being changes with the time. There are different factors present with the help of which individual can be motivated and it involves theories of McGregor, ERG, Herzberg etc (Stotz, 2010). In order to motivate employees within the workplace, company uses Herzberg theory that considers hygiene and motivating factors. Hygiene factors are those which cause a person to become unhappy and involve physical work environment, job security, pay etc. Whereas motivating factors encourages employees to work for the welfare of company and increases job satisfaction. Management of Tesco provides staff members sense of responsibility and recognition that increases their satisfaction level. So, company considers these factors as important one and is used in the workplace so that performance of employees can be easily improved within the workplace (Glanz, 2002).

On the other hand, British airways use process theory of motivation to encourage its staff members. Process theory is a commonly used form of scientific research study which involves the events and occurrences that are the result of certain input and leads to outcome. In case if the outcome is to be duplicated than it is required to focus more on the process. Company uses Expectancy theory in order to understand the factors that motivate staff members in the workplace. There are three components in the expectancy theory which involves expectancy, instrumentality and valence (Romero and Kleiner, 2000). Expectancy is associated with the belief that efforts of an individual will lead to achievement of desired performance goals. Instrumentality is based on the belief that employees working in organization will get reward if the performance expectation is met and valence is linked with the value of reward like person determines whether reward is attractive and motivated him or not. So by using this theory, British airways manage its employees and it becomes easy to coordinate with each other. Both the theories are effective for business enterprise and helps in management of human resources but process theory is more effective as compared with content as it is necessary to analyze the process of motivation and linked with how motivation occurs. By following this process, company can easily identify the motivational factors and they can be used in the workplace (Govindarajulu and Daily, 2004).

Money as motivational tool

Money directly motivates employees present in the workplace and affects the performance of an individual. To encourage staff member, company depends on money and reward strategies are designed in monetary form. Main advantage is that money as a motivational tool encourages staff members to take initiative and they help organization to achieve the targeted objectives. Whereas employees try to compete with each other in order to get benefit of the reward on the basis of which it can be said that staff members operate efficiently (BerezaEREZA, 2010). It directly satisfies personal needs of the people and they become capable to satisfy their personal needs. Company like Sony, Asda uses money to motivate its staff members and consider human as a valuable resource. It helps firm to gain competitive advantage and in turn employees do not prefer to leave job as they are highly satisfied with the current working environment.

In every organization, it can be seen that employees working in sales department are motivated to achieve sales target with the help of monetary benefits like incentive plan etc. So, it directly becomes easy for firms to achieve sales targets and helps to sustain in the market. In the era of perfect competition, it is necessary for firms to manage its employees efficiently as they will help to achieve the desired aims (Guinn, 2013). On the other hand, firms like Ford, Apple does not consider money as powerful motivational tool and they use other techniques to encourage their staff members. Company provides other benefits like health, insurance etc but they are not effective and decreases motivation level of staff members.

There are many situations present which motivates employees within the workplace like in case of workers they have to perform work which is considered to be very low so in this case it is required to use money as motivational tool (Doyle, 2005). When employees are not satisfied with working environment and job than in such case money is used as an appropriate tool so that employees can easily adopt the environment of the firm and they will work for the welfare of enterprise. Money is also used by firms when work is considered to be risky and employees are not able to achieve the targets assigned to them so in this case management can easily motivate them to take initiatives and performance can be improved easily.

So, in these situations money can be used by company to increase motivation level of employees. It will directly help staff member to coordinate with each other and encourage to take part in all the affairs of the enterprise (Darós, 2013). Motivation refers to the inner force that guides behavior and encourages people to work efficiently and for the welfare of enterprise. Different techniques are present with the help of which it becomes easy to manage all the employees and they are motivated to achieve the desired objectives. Whereas it helps management to implement the plans linked with expansion plans as staff members are satisfied with working conditions.

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Conclusion

Above report has helped to understand the importance of motivating employees in the workplace in order to increase productivity of organization and ultimate aims can be achieved easily. According to Lauby (2005) motivating employees will surely help firm to competitive edge and helps to become leader in the market. Different techniques are present with the help of which employees can be encouraged and support the entire enterprise. Most effective strategy can be developed by using money as it directly influences the staff members and they take initiatives in order to improve their own performance (McGee, 2006).

According to Doyle (2005) by developing appropriate reward system, company can develop its unique brand image in the market with the help of its employees and in case if money is used as motivational tool that more employees can be retained easily and no one will prefer to leave the job. It will also help staff members in knowing their real importance within the organization. Firstly, firm should analyze the factors that can help to motivate employees and by using all the factors people can be encouraged. Theories like content and process are also effective and used by firms like Tesco and British airways. So, it directly helps firm to improve their performance in the market and helps in satisfying need of target market while it helps employees to work efficiently and for the welfare of organization.

From the above report, it has become easy to understand the importance of developing appropriate reward strategy within the workplace as it is directly associated with performance of the employees. Every company uses different reward strategy for its staff members but it is good for an organization to work most effectively in the monetary form where employees compete with each other as they are getting financial incentives. This will help firm to achieve the targeted objectives. Whereas by adopting the system of total rewards, company can use all the elements that increase motivation level of employees and they perform better. Company like Tesco and Google has used effective reward strategy for its employees and this is the reason behind success of the enterprise.

References

  • Armstrong, M. and Murlis, H. (2007). Reward Management: A Handbook of Remuneration Strategy and Practice. Kogan Page Publishers.
  • Armstrong, M. (2010). Handbook of Reward management and practice: improving performance through reward. 3rd ed. London: Kogan Page Publishers.
  • Perkins, S. J. and White, G. (2008). Employee reward: Alternatives, Consequences and Contexts. Chartered Institute of Personnel and development.
  • Rogers, S. L. Lohwater, K. W. and Hager, H. (2003). Communicating total rewards. WorldatWork.
  • Imbun, Y. B. (2003). Strategic Reward Systems. Personnel Review.
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