Practical Motivators (Non-financial (Flexible Working (ADV:
- Increased productivity
- More pleasant
- Increases motivation
- Provides more learning opportunities
- Facilitates organization
- Group can be divided into subgroups-generating conflicts-subgroups formed based on personal affinities (relating to someone)-cause people to end up defending their ideas/position based on sympathies/professional criteria-not remedying this leads to decline in performance + breakdown of the team
- Someone can try to impose their judgement-all ideas/opinions must be respected + taken into account
- Performance can decrease-people can work less in a group than they would work individually-wanting rest of group to compensate for them
- Some people can cause problems-people see teamwork as torture + don't feel comfortable so will cause problems continuously
How does it work?
Teamwork is often a crucial part of a business, as it is often necessary for colleagues to work well together, trying their best in any circumstance. Teamwork means that people will try to cooperate, using their individual skills and providing constructive feedback, despite any personal conflict between individuals.
- Flexibility to meet family needs, personal obligations, and life responsibilities conveniently.
- Reduced consumption of employee commuting time and fuel costs.
- Avoids traffic and the stresses of commuting during rush hours.
- Increased feeling of personal control over schedule and work environment.
- Reduces employee burnout due to overload.
- Allows people to work when they accomplish most, feel freshest, and enjoy working.
- Depending on the flexible work schedule chosen, may decrease external childcare hours and costs.
- Increased employee morale, engagement, and commitment to the organization.
- Reduced absenteeism and tardiness.
- Increased ability to recruit outstanding employees.
- Reduced turnover of valued staff.
- Allows people to work when they accomplish most, feel freshest, and enjoy working. (e.g. morning person vs. night person).
- Develops image as an employer of choice with family-friendly flexible work schedules.
How does it work?/ow is it important?
Flexibility in the workplace allows employers and employees to make arrangements about working conditions that suit them. This helps employees maintain a work/life balance and can help employers improve the productivity and efficiency of their business.
Def: that allows the employees a certain degree of freedom in deciding how the work will be done and how they'll coordinate their schedules with those of other employees. The employer sets certain limits such as minimum and maximum number of hours of work every day, and the core time during which all employees must be present.
- Employees who thrive in an office environment may find it difficult to work when his colleagues don't hold the same schedule. This is why many employers require core days and core hours during which everyone is in the office.
- Working from home can often make neighbours and friends think you aren't actually working, thus causing problems with relationships. (Friends can become upset when you say you can't watch their child, or let the repairman into their houses—because, after all, you're home all day.)
- There is no clear delineation between work and home. When you use flexible schedules sometimes that means work all of the time. If your boss allows you the flexibility to go to to your child's soccer game, then the boss may not feel guilty about calling you at 9:30 p.m.
- Teams still need to meet, which requires some set guidelines.
- Some people take advantage of the flexibility and use that as an invitation to work from home which really means watch Netflix with their email screen open.
- Some managers, who are used to seeing when their staff members come to work, watching what staff do all day at work, and knowing when people leave for home, have trouble adjusting to the new management style which requires trust.
- Office-oriented people sometimes view their work-at-home colleagues as slackers because they can't physically see their productivity.
- Compressed work weeks can make client handovers complicated—clients expect service 5 days a week during business hours and can be fussy when an employee isn't in on Friday.
- Jobs that require customer-facing responsibilities only allow certain types of flextime. Whole days working from home are not an option. Other kinds of jobs such as assembly-line manufacturing and hands-on healthcare such as nursing share the same disadvantages. Employers struggle with fairness when only certain employees can work remotely.
- Learn new skills
- Reduce boredom
- Receive Recognition
- Employee Motivation
- Lack of training-lead to lower productivity
- Increase Workload
- Conflict with Non-participants-Those individuals who want more responsibility, but haven't shown that they can handle it, may become disgruntled, bitter toward management and the employees who are a part of the job enrichment process.
- Poor performance- Poor performance can cause employees to feel a sense of incompetence or as if they've you beaten down. Poor performance can also cause employees to get stripped of their new responsibilities, which can cause embarrassment.
How it works: Job enrichment adds new sources of job satisfaction by increasing the level of responsibility of the employee. Job enrichment is the process of improving employee satisfaction by modifying their work, either by adding increasingly challenging tasks or simply adding new tasks. Job enrichment has the ability to create happier and more content employees which can help reduce employee turnover and improve employee productivity.
- Allows managers to see hidden talents
- Helps in exploring interests and ideas
- Identifies skills and attitudes
- Motivates all employees and helps them to deal with new challenges
- Boosts satisfaction and lowers the rate of attrition (strength/effectiveness)
- Helps in aligning (arranging) all requirements and competencies(ability to do something successfully/efficiently)
- Keeps away all fraudulent (obtained) practices
- Wastage of time and effort:-persuading employees and motivating them for job rotations
- Employees take time:- individuals tend to take up a lot of time to get acquainted with the new process
- Leads to a whole lot of stress and anxiety:- expected to step outside their comfort zone and end up not contributing enough in other departments
- It doesn’t check the time wasted:- in training those who are not worth it and those who don’t really deserve to be within the system as well. Once picked the wrong kind of people for job rotation, it creates a danger of misuse of information of other departments as well as their data.
- Zero results:- towards the end. People end up learning after being shifted to a new department.
How it works: The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them.
Def: A job design technique in which employees are moved between two or more jobs in a planned manner.
Def: payment for each item produced – it is therefore the easiest way for a business to ensure that employees are paid for the amount of work they do.
- Increases the efficiency of all the employees:
- They do not constantly require any kind of micromanagement:
- It is very easy to calculate each sale made by the worker
- Workers do not end up wasting any time
- They are encouraged to think of better working methods
- The number of products produced is much higher
- The workers set deadlines for themselves
- Workers pay much more attention to quantity and not quality:
- Planning for the future becomes rather tough:
- Finding and fixing on a reasonable piece cost is a rather tough task:
- It puts immense pressure on all the employees:
- Sometimes even more super vision is required:
How it works: an employee receives a set amount for each item he produces, regardless of how fast or slow he works.
Def: Commission is a payment made to employees based on the value (worth) of sales achieved. It can form all or (more often) part of a pay package. Commission is, therefore, a form of "incentive pay".
Commission, like piece-rates, is a reward for the quantity or value of work achieved. In most cases, the employee is paid a flat percentage of the value of the good or service that is sold.
The rate of commission depends on the selling price and the amount of effort required in making the sale.
- From an employee's point of view - Enables high performing sales people to earn huge amounts
- To the employer - the payroll cost is related to the value of business achieved rather than just the amount produced.
- Sales people may miss out crucial information when making sales to customers, resulting in the customers being misled and missold eg the sales people not explaining the product/service in enough detail to the potential customer
- High commission earnings enjoyed by some of the sales team may be resented elsewhere in the business – particularly if the sales actually depend on a team effort
- It is difficult to change what proves to be an over-generous commission structure without upsetting and demoralising the sales team
- Once commission payments have been made, the sales force may lose some motivation until they begin to focus on the next payment (which might be up to 12 months away)
How it works: Within a commission structure, a company compensates its employees based on the revenue they generate for the business.
- Brings employees together to work towards a common goal. The sole aim of the employees is the success of the company.
- Motivation levels of the employees are high because of the extra financial gain they get if company is profitable.
- The employee focus is on profitability and they work together as a team.
- It increases commitment to the organisation.
- Employee can identify with the company. He or she will feel part of it.
- Bridges the gap between the employee and employer.
- Promotes the well-being of the employee.
- Additional income for the employee helps them to lead a comfortable life. If they are comfortable in their personal life, the performance at workplace improves too.
- The salaries of the individual employees go up equally, not on the basis of merit or promotion.
- In the case of smaller companies the drastic fluctuations in the earnings of company’s employees may affect the personal earnings of the employees.
- The focus of the employee may be of the profit rather than on quality.
- With time the motivation behind hard work for higher company’s profit diminishes and employees start taking it as their right.
- People get their share of the profit regardless of their contribution.
- Employees at top position feel more motivated than the bottom rung as they get higher percentage of profit share.
Def: Profit sharing is a compensation program that awards employees a percentage of the company’s profits. The amount awarded is based on the company’s earnings over a set period of time, usually once a year.
How it works: Once a pool (union of different company) is created, either company leadership or the human resources team will create a formula for distribution. This is what is required to set up a profit sharing plan:
Adopt a written plan document
Arrange a trust for the plan’s assets
Develop a record keeping system
Provide plan information to employees eligible to participate
It is important to keep detailed records of how the plan is distributed among employees. Companies can update their plans as needed, but this should be done with proper oversight, The Balance says.
Profits can either be shared in the form of stocks and bonds or a cash amount.
Related Pay and bonuses
(performance) Related Pay: is a salary/wage paid system + financial reward based on the positioning of an individual or team/employee and how well they perform + whose work is considered to have reached standard or above. It is used to measure employees output produced/sales achieved.
Bonuses: a payment made to an employee above their normal salary or compensation package. They are one of the way to reward employees for the good job their doing.
(Performance) Related Pay:
- Managers can use a defined framework for setting goals. It should improve individual productivity and performance.
- Employees are more likely to focus on what they need to do to improve if this is directly linked to a paid reward
- A good PRP system will reward the best performers
- It is an effective way of dealing with poor performance as employees will work harder if they know they are getting money for s reward
- Rewarding high performance can assist in retaining (keeping) staff
- It provides a direct incentive for employees to achieve defined work targets
- The contribution an employee makes is recognised with a tangible (quality?)reward
- A healthy performance based culture can be developed with its introduction
- Employees can be de-motivated if the goals set are too hard to achieve
- Too much of the process relies on the quality of judgement made by a manager
- It reduces pay equity (stock) and can make a company liable to costly equal pay challenges if not operated fairly
- The performance appraisal (assessment) process can be affected detrimentally (harming) because of the focus on financial reward rather than developmental needs
- Team spirit and co-operation can be hindered (made difficult for someone for something to happen)
- A reward is made for a short-term quantifiable (expressed/measured as a quantity) goal, it can be too narrowly focused
- There is a danger that employees can expect an additional payout year on year. In a low inflation (increase in price, fall in purchasing value of money) climate the rewards might not appear to be that great
- Employee motivation
- Improved production-can incentivize a number of objectives;
- higher sales
- manufacturing production
- Excellen attendance
- Improved morale and retention
- Employee's gain temporary positive feelings about the business
- This generates long-term loyalty to the organisation because the bonuses are one way to create a happy workplace
- They should connect to an intended purpose
- If the employees are confused/uncertain to why they receive payment, it shows they don't have much value for the employer
- When the bonus payments don't contribute to higher morale/improved productivity, they are more of an expense for the business
- Resentment from inconsistent implementation EG: If you dole out generous Christmas bonuses one year and then give your workers a gift certificate for an inexpensive dinner the next year, employees may naturally feel disappointed + if you give bonuses inconsistently to employees and departments, you risk internal bitterness and a sense of unfairness, which is bad for workplace morale.
How does it work?
(Performance) Related Pay - Performance related pay is generally used where employee performance cannot be appropriately measured in terms of output produced or sales achieved.
Bonuses - They are designed to reward employees for fulfilling their responsibilities and for delivering superior results.
What it is, How it works, Adv and Disadv