ENG 211- Final Proposal Project - Proposal for Rewarding and Compensating Employees

MEMORANDUM

To: Company Employees

RE: Proposal for Rewarding and Compensating Employees

Introduction

According to Kumar, Hossain and Nasrin (2015), motivation of workers is a relevant tool for high production in any organization as it leads to employee satisfaction. However, the authors argues that although many people are motivated by money, the motivation do not last as employees eventually get used to their level of compensation. In addition, the author states that as long as there is a competitive payment of the employees, performance and job selection is not mainly factored by money. A substantial number of employees are motivated by both the work they do and their work of environment more than they are by the money earn. Therefore, the reward system and the compensation given to the employees should not only be monetary but also ideas which are non- monetary.

The purpose of this paper, therefore, addresses how employees are rewarded, and compensated, their level of satisfaction and productivity in the workplace. The paper will also address monetary compensation, and its satisfaction and influence to the employees. This is important because, as illustrated by Wong (2018), the businesses that struggle with cash flow may find it difficult to give money to their employees in equal measures as other competitive organizations. However, non-monetary rewards also serve the purpose. Therefore, the paper will also explain how compensation and rewards are done both in monetary and non-monetary forms to ensure employee satisfaction and, hence, high yields.

Problem Statement

Failure to offer compensation and rewards to workers contribution to poor performance and boredom among employees, hence, low customer satisfaction (Werner and DeSimone, 2009). Among the results of unrewarded employees are; concern in their productivity. When employees are not rewarded or compensated, the productivity of the workplace becomes poor as the workers work under forced conditions, hence, leave others to do their work. When other members are overworked, they burn out, leading to low production, hence, low quality products and services. In addition, unmotivated employee is unable to overcome challenges when they come their way. Instead of confronting the problem, they are confronted by the problem and hence back off.

On the other hand, motivated employees view challenges as intrinsic value and work until the challenge is over. The unmotivated workers lack that enthusiasm and energy. Unmotivated employees don’t care much about their employment (Gerald and Rezaei, 2016). This makes them complain if a little more work is given to them as their concern is the payroll which may affect all the members in the team as work is left to be performed by the few who are willing, leading to low production. Poor customer service also results, as the employees do not carry the vision of the organization or about organizations success. The employees cannot therefore make a step to help the customer as long as it takes them an extra minute. Motivation of workers through rewards and compensation is, hence, significantly important for every organization’s success and should, hence, be looked into in this paper.

Proposed Solution

To retain the best employees in the workplace and to motivate those that are unproductive, a well-stipulated compensation plan may be put in place. The employer may ensure that the employers receive salaries and incentives in addition. When the employees perform the work allocated to them, consistent income of either monthly or bimonthly reward may be efficient. Incentives should be given to the employees as soon as their goals are feasible. Therefore, the employer may offer quarterly or monthly incentives for the employee’s efficacy. The incentive part of the plan should remain clear and measure utmost four performance factors. This will make the employees motivated, resulting in high performance (Jackson and Mathis, 2008).

The compensation plan may also include establishment of SMART goals which are specific, measurable, attainable, realistic and time-bound. The employees may be encouraged to set the goals after which they are rewarded upon accomplishment. Although team compensation is good, individual compensation is most efficient according to the results attained. In addition, a compensation plan that offers better than the competitors will be efficient in ensuring the employees feel rewarded and appreciated. The employer may choose to benchmark other institutions to find out their compensation plan and, hence, offer better for his or her employees.

The top performers may also be rewarded using merit increases. The highest performing employees should be the most rewarded, followed by the satisfactory employees (Gerald and Rezaei, 2016). The employees who operate below average should not receive rewards as this would only encourage their laziness. Besides using financial rewards to compensate the employees, non-financial rewards should be given to the employees. For instance, planning of an annual trip for the employers who achieve their annual goal, and offering of trainings to enhance their skills. The proposed solutions may enhance work performance, customer satisfaction and employee motivation.

Scope

Employee reward and compensation is an essential tool to ensuring the success of an organization as it results in employees’ satisfaction, high productivity, hence, customer satisfaction.

The study will respond to the following questions:

i. How does rewarding and compensating employees affect their satisfaction, productivity and customer satisfaction?

ii. What are the dangers of failing to reward and compensate employees?

iii. How is employee satisfaction related to the success of an organization?

Method

To carry out the study, secondary sources will be of great significance as primary sources may take a long time and be inefficient for this study. Therefore, credible books, journals and websites will be of relevance. Among the articles and books to be used are, “The Relationship between Job Motivation, Compensation Satisfaction and Job Satisfaction in Employees of Tax Administration- A case Study” by Gerald and Rezaei, “Human Resource Management” by Jackson and Mathis, “Impact of Non- Financial Rewards on Employee Motivation” by Kumar, Hossain and Nasrin, “Human Resource Development” by Werner and DeSimone and “Bringing Human Resource Professionals Together. Compensation and rewards management” by Wong.

Qualifications

As a result of having taken a course in human resources and having worked in an organization for one year, the skills and knowledge gained will help while handling the topic.

Limitations

While carrying out the study, time would be a limiting factor as the research is supposed to take a short time while comprehensive research is required so as not to be biased. In addition, inability to use primary sources such as interviews and surveys may cause data bias as the secondary information may be biased.

Conclusion

Employee compensation and rewarding is an essential tool for the success of any organization since the employers are the key players. Without proper handling and maintenance of the employees, the organization would collapse and eventually close down. Therefore, measures to reward and compensate employees must be put in place for every organization. A proper compensation plans including how salaries and incentives should be done, how to reward top employees in the organization upon completion of desired tasks should be clearly thought of and established. Proper employee motivation will not only cause their satisfaction but will also increase production, hence, result in customer satisfaction. Therefore, with your approval to carry out the research, I will begin immediately.

References

Gerald, P & Rezaei, S (2016). The Relationship between Job Motivation, Compensation Satisfaction and Job Satisfaction in Employees of Tax Administration- A case Study. Asian Social Science 12(2), 165

Jackson, J & Mathis, R (2008). Human Resource Management. Thomson South-Western. (13) 12. 453-518

Kumar, D., Hossain, M. Z & Nasrin, M. S (2015). Impact of Non- Financial Rewards on Employee Motivation. Asian Accounting and Auditing Advancement.

Werner, J.M., & DeSimone, R.L (2009). Human Resource Development. 5th Ed. Ohio: South Western Cengage Learning.

Wong, C (2018). Bringing Human Resource Professionals Together. Compensation and rewards management. HRmatters21.