ALTERNATIVE SOLUTIONS TO MOTIVATION AND REWARD PROBLEMS
Motivational factors within an organization results to performance of both the organization and the employees. On the other hand, the employees determine the performance of the organization, hence the significance of motivation in varied aspects such as rewards, performance appraisals, career developments, regular acknowledgement, and concerned executives.
This paper aims at identifying issues that have affected the Riordan Company as well as derive alternative solutions to issues identified. On the hand, the paper will also assess two companies affected by the same issues as Riordan’s. The scope of this paper will focus on the issues within the company, response towards the issue and results of company’s response.
Motivation and rewarding
The company has been affected with issues connected to employees’ motivation. The motivation issues however affect the satisfaction in employment which affects the overall productivity. In Riordan’s case the overall turnover has not been affected though executives raised concerns on the high employees’ turnover. Reward for the employees is one major issue identified in Riordan’s case. Most employees’ were unsatisfied with the reward system as identified by varied departments such as Sales, IT and Research and development.
Non discrimination in pay
This factor contradicts with Riordan Company due to the presentations brought forward by various departmental executives to promote preference of awarding benefits as opposed to others. For instance, the IT department theorizing that through actualizing the compensation factors for its employees, the future of the company will be guaranteed.
Value of employees’ benefits
Riordan CEO has no consideration for awarding employees as he belief focused on the loyalty factor diminishing.
Pay for performance plan
The Company disregarded the performance of its employees in varied departments such as Sales, and IT. This factor however presents low motivation as all the contribution towards maintaining competitiveness of the company goes unacknowledged. In addition this factor is affected by fairness deficits as well as willingness to comply with ideas relayed.
Alternative solutions for Riordan
Initially, to develop alternative solutions for the company, a clear market survey will assist in identifying market scenario in terms of employee benefits. In addition, assist in gaining more insight on competitors’ initiatives in rewarding their employees.
First the company need to consider the employees as assets which can turn to fixed; when there is job satisfaction or turn to liabilities; when there is low motivation and satisfaction resulting to high turnover of valuable employees.
Secondly, act on issues regarding the survey of employees’ benefits and other developmental factors within the organization. Providing the needed rewards will gain more time for the employees’ retention through loyalty, but long-term initiatives are recommended to maintain low or no employee turnover and motivation. Commendable alternatives are in form of career development initiatives such as on job training programs, and performance appraisal for all employees. These appraisals can be administered individually then proceed to departmental and the whole organization. Through performance appraisals employees are enlightened on weaknesses and strengths hence focus on developing weaknesses to strengths (White, 2005).
Issues related to this company were focused on high employee turnover due to low motivation derived from lack of financial incentives. In addition there were promotional deficits within the management strategies.
To respond to the issues, first the company welcomed a new CEO with focus on his approaches mitigating turnover levels. Secondly the CEO, David Brandon funded a research on identify areas requiring changes within the company. It emerged that paying employees in rewards was a short term initiative hence the development of long-term geared strategies such as training, conducting performance assessments for keeping track on departmental worst and credible performer (White, 2005). More so, promotions initiated from corporate managers to the operations employees. Other incentives such as gas and phone credit allowances.
Once all the initiative actualized the company realized tremendous changes in employees’ turnover rates declining on 158 percent to about 100 percent. This means that the initiatives implemented resulted to employees’ satisfaction hence credible performance in New York Stock market (White, 2005).
The issues related to this company were also connected to high turnover rate for employees, diminishing the growth factor. The issue of motivation was also a factor emanating from the company’s performance. More so, the incompetence of human resources department in hiring motivated employees just as Riordan.
To deal with the issues, the company resulted to formulating a long term geared plan. This plan focused on motivation of employees according to prediction of personal interest during interviews. In addition, the company implemented goals on the organization commitment to its employees hence offer a conducive environment focused on motivational strategies. More so, continuous assessments on employees to point out strengths and weaknesses hence focus on mitigating the weak points.
The results achieved by the company were realized in terms of low turnover percentage. In addition the human resource mandate in selection was also developed to attain productive employees. Organizational values were also passed on to new and existing employees, hence creating understanding between corporate and the employees (Wilson, 2010).
In conclusion, it is clear that conducting regular assessment assist in identifying low performance areas hence develop results- geared approaches.
White, E. (2005). New Recipe: To Keep Employees, Domino’s Decides It’s Not All About Pay; Pizza Chain Attacks Turnover By Focusing on Managers; Mr. Rivas Keeps His Cool; Funny Glasses and a Pet Fish. Wall Street Journal (Eastern Edition), p. A.1. Retrieved June 15, 2011, from ABI/INFORM Global. (Document ID: 794278061).
Wilson, S. (2010). PepsiCo Reduces Employee Turnover. Retrieved June 15, 2011 from One test website: http://www.onetest.com.au/home/casestudy/pepsico-reduces-employee-turnover