Employee Motivation: Key Managerial Factor – Case Study Example
Case Study of Employee Motivation Employee motivation is indeed a key managerial factor that generally enhances the productivity of an organization (Wilcox, 2015). This is because different individuals gain the zeal to do more work and be more efficient depending on the rewards that they will get for their tireless efforts. Concerning this observation, a study conducted in the Aflac Insurance firm will form our basis of its justification from a range of different perspectives as follows.
How the Company Uses Its Products or Services to Enhance Compensations
The corporate philosophy of this firm is majorly intended to see its employees having the most suitable atmosphere to work in, as it states, ‘The best way to succeed is to value people. Treating employees with care, dignity and fairness are founding principles of Aflac. The firm also provides an enriching and rewarding workplace for their employees. The firm also provides Aflac products to employees at little or no costs. For example, it offers life-paid employer insurance, a company-paid cancer policy and company-subsidized accident protection insurance. Getting subsidies and free services from the firm will thus be just another chance for the employees to smile and feel rewarded justly. This form of compensation motivates employees (Roberge, 2015). Providing total rewards is in line with philanthropic goals. The company awards the volunteer of the month- somebody who selects an area of their choice and dedicates time in offering charitable services in the area selected. This is another strong pillar in employee compensation. The firm also provides career development programs employees for their next career level through extensive employee training and leadership programs.
The Internal and External Strengths and Weaknesses Identified and How the Company Responded To These Factors from a Total Rewards Perspective
Aflac has the following strengths. Up to 81% of employees are happy with the profit-sharing bonus compensation strategy of the company. Largely, when employees are pleased with a step undertaken by the company, in motivates them on whatever they are doing. This also translates into little employee turnover. Upon being interviewed, 91% of the employees indicated that they would retain their employment with the firm since they thought it was the best of all. When a company’s reputation is highly valued, it implies that it treats its employees are contented. In fact, the Bible also observes that workers should be treated fairly (Colossian 4:1 and Deuteronomy 24:15). As far as weaknesses are concerned, Aflac finds it a challenge implementing their employee compensation strategy to be cost-effective. Indecision in the way forward is another weakness. Some managers opt for portability direction while others seek stability during the implementation. In response, the Vice President Human Resource in charge of compensation and benefits- Casey Graves offered an employee motivation based solution. The firm also opted to provide value-added programs as a means of rewarding the employees and offering other benefit packages.
Examples of Traditional and Non-Traditional Rewards and how they are Used to Meet Organizational Objectives
The traditional rewards the company opted for were as follows. There is employee recognition through verbal and written expression of gratitude by the management. Secondly, the management interacted with employees in conversation so that they can feel appreciated and part of the organization. Junior and senior employees interacted freely. This strategically eliminates the gap between the junior employees and the management. Thirdly, the management could directly involve employees in decision making especially those that directly involve them. This is decentralization. It allows the employees to take part in making decisions that will lead to the effective management of the company in a bid to increase productivity of the organization (Dinkin, 2015). Non-traditional rewards used to meet organizational objectives include compensation and rewards. This majorly portrays cash rewards and bonuses. Most organizations give their employees bonuses at the end of the year as a means of reward (Dinkin, 2015). This could also be tied with shopping vouchers among others. This improves morale in the employees. It encourages them to deliver more than they have to get better gifts in future.
How the Company Aligns Its Benefits with Its Corporate Values
The corporate values of Aflac are clearly stated in its corporate philosophy. It states, “The best way to succeed in our business is to value people.” They further state that they shall treat their employees with care, dignity and fairness. The philosophy statement reflects in the benefits that they offer to their employees in several ways as discussed below. Firstly, they provide their products to employees at little to no costs. This in turn reflects both dignity and fairness to their employees. It is noticed that they offer employee-paid life insurance. This ensures that the employees enjoy dignity to the latter as their life is assured and protected by the company at no costs (Wilcox, 2015). In addition, they also offer a company-paid cancer policy. Moreover, the company still offers a subsidized accident insurance to its employees. The company also provides total rewards to its employees in line with philanthropic goals. Such areas are specified to be in health, education, and an assortment of youths and arts. The company awards an employee who spends good time of the month volunteering to serve others through works of charity.
Casey Graves, the VP-HR in charge of compensation and benefits, noted, “The needs of the company’s employees continue to be the driving factor behind Aflac’s total rewards programs.” Based on that, the following are recommendations for the company. Aflac should offer full cover for employees. It should not subsidize costs like in the insurance cover for accidents. Subsidizing the costs may make an employee feel that they are not fully appreciated.
The company should open and encourage both vertical and horizontal communication. This can enable them get immediate feedback from the employees on matters affecting employee day-to-day activities. To find out employee feelings in certain areas or issues, questionnaires and other forms of interviews should be used periodically. That helps in decision-making by the management. The organization should also benchmark with other organizations to know how other organizations give rewards to their employees. They cannot be so certain that they are the best in terms of rewarding employees unless they conduct a personal survey. This will help them in the sense that they will be able to move at par with competitors, and may just turn out to be the best (Bengtsson & Hand, 2013). The human resource department should also launch training to individual employees only in fields that they are interested in, other than fields where the organization thinks that they are best suited. This still revolves around the tastes and preferences of individual employees over a uniform policy within the organization. Most importantly, employees should be given a chance to vote whom they think volunteered best, instead of selecting just an individual, who may have not shown the deserved effort according to other employees within the organization.
Bengtsson, O., & Hand, J. M. (2013). Employee Compensation in Entrepreneurial Companies. Journal of Economics and Management Strategy, 22(2), 312-340.
Dinkin, E. N. (2015). Dust Off the Historical Approach to Total Compensation. Benefits Quarterly, 31(1), 43-50.
Roberge, M. (2015). The Right Way to Use Compensation. Harvard Business Review, 93(4), 70- 75.
Wilcox, M. (2015). Offering health insurance putting employees in harms way. Wyoming Business Report, 15(11), 5-6.
The Holy Bible: New International Version.