Motivational Strategies
Employees are one of the most important resources to a given organization because they are the frontline personnel that engage the customers and participate in the day to day running of the company and are the drivers that propel the organization to the desired direction. For this reason, it is important to optimize their performances using the various reward strategies that in the end motivate them to work hard and smart to achieve the organizational goals. There is therefore, the need to have a performance evaluation process.
A formal performance evaluation process is necessary and will therefore be implemented. In the practice of human resource management, it is referred performance appraisal, which is an important exercise in an organization that enables it to check whether the employees are performing according to their defined roles within the organization and whether the organization is paying them the right amount of wages and allowances and if not, the company reviews and rewards accordingly as per the rewards program (Longenecker and Fink, 2017). The main reason for implementing a formal evaluation process is that it provides the grounds for both the employee and his or her supervisor to engage in a discussion of the areas of employee’s performance that can be improved by the employee. It will then provide a basis for the employee to be evaluated for the purposes of assessing their individual impact on the progress of the organization so that they are rewarded accordingly. It is particularly important for companies whose employee in puts is critical to the outcomes of the organization’s projects such as the case of Pfizer, which specializes on human vaccines research and development.
The organization’s reward system is an important program that influences the commitment of the employee towards achieving their described roles in the organization. It enhances the efforts of the employees and the quality of the job outcomes (Došenović, 2016). The proposed rewards system will have a number of prioritized elements due to the fact that rewards systems and programs are costly to the organization and the most important elements must be prioritized because of the limited budgetary allocations to the program. None the less, it is an investment that will boost the productivity of the employees and in the end bring in more profits.
The previous reward system failed because it only focused on the monetary rewards and failed to have the social aspect of reward as well. Improving a rewards system is not just an affair of the management of the organization but requires a collaborative efforts of both the management and the employees. The participation of the employees in improving the rewards system is very important because the rewards system is designed for the employees (Cappelli and Travis, 2016). The new employee rewards system will combine both the non-monetary and cash rewards to enable a holistic approach to the motivation of the employees. It will still have a competitive base pay so that employees can be confident that even as they are working hard, they can be assured of a fixed salary before they can earn other allowances. Another important element that must be included and given priority is the commission, which will motivate the employees to strive to generate more revenues because they will directly feel the impact of increased revenues. The system must also entail the recognition and honoring of the best performing employees as a non-monetary reward for their outstanding performance. it will have the effect of encouraging employees to work hard so that they can earn respect and recognition at their work places and have the general effect of enhancing positive competition among the employees.
The successful transition of the new rewards system that will replace the old rewards system will start with the constant promotional communication and announcements in a manner that appeals to the employees and enables them to perceive changes and improvements in the rewards system (Franco and Otley, 2018). In the management of the change in the reward system, the first step as has been discussed is having the employees involved and communicating the new system in a clear and precise way and ensuring that the rewards system is tied to the organization’s objectives, where the new system must then be focused on paying the employee instead of the job.
The compensation information communication is very essential in making the rewards system effective because the communication of the information makes the rest of the employees to witness that the program is working and is real and will in turn be motivated to achieve the same (L’huillier, et al., 2020). However, it must be done cautiously as not all the information should be communicated particularly the base pay, which may make some employees with less base pay than the others to feel demotivated.
Changing a rewards system may pose challenging managerial issues such as the need to address the problem of unequal pay that arises from monetary rewards, which has the effect of fueling employee turnover and negatively impact performance. It can be addressed by proper consultation with employees and communicating righty.
References
Cappelli, P., & Tavis, A. (2016). The performance management revolution. Harvard Business Review, 94(10), 58-67.
Došenović, D. (2016). Employee reward systems in organizations. Economics, 4(1), 107-118.
Franco‐Santos, M., & Otley, D. (2018). Reviewing and theorizing the unintended consequences of performance management systems. International Journal of Management Reviews, 20(3), 696-730.
L’huillier, G., Mac-Vicar, M., Sepulveda, C., & Larrain, F. (2020). U.S. Patent Application No. 16/734,770.
Longenecker, C., & Fink, L. (2017). Lessons for improving your formal performance appraisal process. Strategic HR Review.