According to Armstrong and Taylor (2017) reward management is term used to describe the formulars, approach and systems essential to recognise the worth and present of employees to the attainment of organisational goals.
Reward is acknowledging the effort and achievement of an employee. This can be used as incentives to motivate employees and improve performances. Examples of reward; public recognition, additional pay, bonuses etc. There are 2 types of rewards; the extrinsic rewards which shows the reward an employee receives like the bonuses, salary raise, gifts, promotion and other tangible rewards to focus on employee’s activities to attain a goal. The intrinsic rewards also tend to give personal satisfaction to the employee such as information, recognition, trust etc, which makes employees feel better in the organisation.
The aims of reward is to reward employees fairly, equitably and consistently in relation to the value of these employees to the organisation.
Firstly, increase productivity. According to a Westminster College study (n.d) , 69% of employees stated that they would work harder if they felt that their efforts were better appreciated. People always want to be recognized for their achievements and the moment they get this positive recognition from management and co-workers they are more likely to push themselves to exceed the goals of the organisation.
Secondly it reduces turnover. Rewards makes employees happy and stay loyal with the organisation. When employees efforts are recognised and appreciated them really have joy in their work to boost them work out their very best and do not want to leave to work elsewhere.
Thirdly, it recognises valuable employees. Westlion avoids the cost of hiring and training new employees because when new employees are hired the organisation spends more on training them of which it could have been best on the valuable employees in the organisation in order for them to work out their best.
It also helps in engaging employees. Employees at Westlion feel engaged and always want to work more harder because they feel recognised and respected in an organisation.
There are various level of employees in the organisation, they are the operational employees, tactical employees who are the middle managers for example HR manager, Marketingmanager etc. strategic employees who are known as the top executive managers for example Managing Director, Chairman etc.
Reward has an impact on employees, according to Kim Harrison leads to greater employee satisfaction and
Higher loyalty and satisfaction scores from customers.
Teamwork between employees in enhanced.
Better safety records and fewer accidents on the job.
Lower negative effects such as absenteeism and stress.
The link between reward management and employee engagement is such that, Peter AdokoObicci (2015) reward play a vital role in determining the significant performance of an organisation and its positively associated to employee outcomes like engagement. Reward represents what the individual wants to obtain from work or what they perceive from cash payments to working conditions (urReham et al 2010). There are 2 types of rewards; the extrinsic rewards which shows the reward an employee receives like the bonuses, salary raise, gifts, promotion and other tangible rewards to focus on employee’s activities to attain a goal. The intrinsic rewards also tend to give personal satisfaction to the employee such as information, recognition, trust etc, which makes employees feel better in the organisation.
Employee engagement is a key driver of organisational success. Saks (2006) defined employee engagement as the degree to which an individual is attentive to their work and absorbed in the performance of their roles. Being engaged means that employees are fully involved and interested in the work which holds their attention and motivates them to do their best. According to Baumruk and Gorman (2006) , an engaged employee advocates for the organisation to co-workers and refers potential employees and customers. Such an employee has an intense desire to be a member of the organisation despite opportunities to work elsewhere.
Furthermore, the intrinsic and extrinsic rewards are positive influence on employee outcomes, they exist to examine the effect of rewards on employee engagement. A study by May et al (2004) found that the meaningfulness, safety, and availability were significantly related to employee engagement. They found out that meaningfulness had a fixed relation to various employee results in terms of engagement.
Therefore, there are benefits of rewards to employees. Where work is meaningful it is said to have an intrinsic motivation for employees and to promote and sustain motivation.
However, employees have a sense of achievement. Westlion employees have a good feeling or the pride especially when they have attained a challenging task, or worked out their best on a specific project. With this sentiment they always want a challenging task that will engage them in the organisation.
Furthermore, Westlion employees feel proud of the job they do because they know it makes a different, for instance, Westlion employees would expect performance-related bonuses for meeting the needs and wants of customers. Employees feel delighted at satisfying the needs and wants of customers which play a vital role of inspiring them in the future, and sustaining their levels of engagement.
Better still, employees are committed and satisfied. Rewards motivates employees and drives them to be committed and satisfied with their work. For instance Westlion employees are very loyal to the organisation and speak well of the organisation to enhance its reputation. Employees are punctual, put in great effort to enhance productivity, enhance good relations with customers and also increase profitability.
Employees are results oriented. Employees are oriented by knowing what results are important and focusing on resources to achieve them. An employee at Westlion provides his or her time, knowledge and abilities he or she can deliver to require results. In so doing he or she takes personal responsibility for achieving those results. This helps employees to be very innovative.
THE PROCESS OF CREATING EMPLOYEE ENGAGEMENT STRATEGIES AT WESTLION AS AN ORGANISATION.
Strategy is defined as a plan of action designed to achieve a long term or over all aim.
Organizational strategy is the sum of actions the organisation intend to take to achieve long term goals. Strategic plans take at least a year to complete, requiring involvement from all levels of the organisation. Top management creates the larger organisational strategy while middle and lower management adopt goals and plans to fulfil the overall strategy step by step. When employees are engaged at work they are more productive, drive higher level of profitability, they are customer focused and more likely to stay with current organisation.
Factors important to organisation strategy include resources, scope and the organisation’s core competency. Resources are finite, allocating them, people, facilities, equipments and all that. This means diverting them from somewhere to elsewhere in the organisation. For example; Westlion to become a no.1 in Accra Ghana sales, needs more focused plans because of its competitors. Competitive advantage is where an organisation is best at its core competency along with the sum of what it knows through experience talent and research. Other factors to be considered include;
The mission and vision of the organisation: the organisation’s strategy should be in line with its missions which explains the existence and why the organisation is in business. Every activity performed should fulfil its purpose. The mission guides all strategic goals and the vision describes what the organisation will have achieved in fulfilling its mission.
Business and functional objectives: for a strategy to work, it must be disintegrated into smaller, shorter term goals and plans. Middle management adopts goals and creates plans to compete in the market place. The lower levels of the organisation, functional managers concern themselves with the day-to-day activities of the organisation taking days, weeks and months to complete their objectives. This engages the employees to work harder to attain their goals.
Organisational culture: is a system of shared assumptions, plans and beliefs which governs how employees behave in the organisation. On the other hand it is the way things are done. This is a factor to consider in organisation strategy because it has strong influence on employees. For example, employees are dedicated on how they dress most especially decently and presentable. This also engages employees making them feel recognised in the organisation.
Organisational structure; this demonstrates how roles, power, responsibilities are assigned and how information flows between the different levels of management within the organization. This helps in identifying specific roles of staff in the various department in the organisation. For example in Westlion every department such as HR play a role of recruiting employees, Marketing department has a role of advertising the products and services, Sales department also play a role of rendering sales to the organisation etc. they work hand-in-hand with each other without conflicting with their various roles and responsibilities.
Leadership: leaders are the profile of the organisation who lay down planned goals and objectives to guide the organisation in accordance to attain its goal. They also create good environment to which employees can be engaged to achieve their strategic goals. The leadership style for employee engagement strategy is vital. Leaders at all levels should aim at building a very healthy relationship with employees. They should also be visible, communicate clearly and consistently to their employees for them to be effective to meet business strategy.
According to managementstudyguide.com (MSG) every organisation seeking sustenance and growth in the ever changing world of work quickly respond to the needs of employees along with designing and implementing a customised process to increase the levels of employee engagement.
The process of creating employee engagement strategies in Westlion is as follows;
Prepare and Design: The first step in the process is about discovering the specific requirements of your organisation and deciding the priorities. After that a customised design of carrying the whole process can be designed. It is recommended to seek advice of expert management consultant in order to increase the chances of getting it done right at the first attempt.
Employee Engagement Survey: design the questions of the employee engagement survey and deploy it with the help of an appropriate media. It can be either in printed form or set online depending on the comfort level of the employees and your questionnaire evaluation process. The survey should be done in a way to engage employees to be part of the action.
Result Analysis: this is the most important step in the entire process. It is time when the reports are to be analysed to find out what exactly motivates employees to perform their best and what actually disengages them and finally compels them to leave the organisation. At this period every view and opinions of the employees are taken into consideration. The results and information can be delivered through presentations which helps implement strategies.
Action Planning: how to turn the results of the survey in to an action is a challenging question that organisations need to deal with the utmost care. Coaching of the line managers as well as HR professionals is very important in order to tell them how to take appropriate actions to engage employees. They should also be told about the do’s and don’ts so that they can successfully implement the changes. A flexible leadership style like the democratic style where leaders respect employees and also involve employees in decision making will be appropriate to get action done.
Action follow-up: Action follow up is necessary in order to find out if the action has been taken in the right direction or not and if it is producing the desired results. With this communication will help get a feedback in order to monitor actions.