Employee Health and Well Being - Term Paper Example

Contents 1. INTRODUCTION 2 2. CASE STUDIES 2 2.1 Public Sector Organisation – Mersytravel 3 2.2 Services Sector Organisation 4 2.3 Small Organisation 5 2.4 Manufacturing Organisation 6 2.5 The Organisation Under Review 7 3. A COMPARATIVE ANALYSIS 8 3.1 Similarities 8 3.2 Differences 9 4. RECOMMENDATIONS 10 Appendix ‘A’ 13 1. INTRODUCTION Employee motivation is a key to success for every company in today’s professional and competitive world. A company is only as good as its employees; and if they are well maintained and well rewarded, and consequently, well motivated, the only direction where the company will move is, upwards. Over the years, employees’ well-being programmes have been the focus of Human Resource Departments in various organisations, as a means of improving staff morale and engagement (IDS HR Studies, 2006). This report presents an analysis of employee relations by organisations in various areas including public sector; services sector; manufacturing sector; and new, emerging organisations. This analysis is then used to identify strategies and recommend areas for improvement for a local company based on the experiences of others in the industry. 2. CASE STUDIES The organisations that are selected for analysis include the following: a) Public sector – Mersytravel, a public transport company b) Services sector – O2, a mobile communication provider c) Manufacturing sector – Komatsu UK, a manufacturer of construction equipment d) Small and emerging organisation – Softwire, a software house e) Medium sized management consulting firm – Cornwell Management Consultants 2.1 Public Sector Organisation – Mersytravel Ensuring better employee relations is as important in public sector companies as for any other organisation. However, it is generally observed that most employees in the public sector organisations suffer from stress (Health and Safety Executive, 2002). Mersytravel is the operating name for Merseyside Passenger Transport Executive; which oversees the provision of public transport on Merseyside. It was initially observed that the employee morale was low and they used to get tensed. The company identified that as per Frederick Herzberg two factor hygiene and motivation theory, some factors like job security, salary, and status etc., that are the provided by public sector organisations do not motivate employees and don not contribute in ensuring employee well being. Instead, if these factors are not present, this may lead to employee dissatisfaction. In contrast, as per the theory, employees will feel motivated if they are provided growth and advancement opportunities, and are recognised for their achievements (Accel Team, 2006). In order to improve employees’ morale and to enhance employees’ knowledge, the company established a learning and development strategy in consultation with its employees in 2003. A scheme called Merseylearn was developed that focuses on providing learning and development opportunities for hard to reach learners such as shift workers. They can use this system 24 hours a day to develop their skill sets. This has also enabled the staff to undertake courses at home (Investors in People, 2006). A wide range of other learning and development programmes have also been developed that have helped staff to undertake language and literacy training within workplace. The company gained myriad of benefits from this approach. Employees’ turn over rate has sharply declined; sickness days, which were quite high previously, dropped by an average 3 days between 2003 and 2006; staff promotions have increased by 10% as a result of training programmes; staff participation in work related participation schemes has also risen by 50% per cent (Investors in People, 2006). This steady increase in employees’ productivity indicate that the training programmes add to the employee well being by improving employees’ skills, knowledge and behavior towards work, and reducing stress levels in employees. Many other public sector organisations have also started in-house training programmes for their employees. 2.2 Services Sector Organisation The key differential advantage that service sectors organisations can exploit is the quality of customer service that they provide. In order to achieve customer satisfaction, the employees should be appropriately trained and suitably compensated, so that they concentrate on their responsibilities instead of worrying about other matters. An ambient workspace and a quality working environment needs to be provided in addition to the more traditional monetary benefits as a means of increasing and maintaining employee well being. O2, a provider of mobile communications services in Europe with wholly owned businesses in United Kingdom, Germany, Ireland and Isle of Man, recognised the importance of well being in employees’ personal and professional lives; and started an employee engagement programme called ‘Balance’ in 2005. The company understands that as per Maslow’s Heirarchy of Needs theory, there are five levels of needs of all individuals including physiological, safety, love, esteem and self-actualisation (Accel Team, 2006). When these needs are satisfied, people feel motivated towards personal and professional lives. The strategy that the company adopts has multiple strands. An employee assistance program is developed that provides counseling services to employees. Other initiatives and programs include stress management courses, mobile messages on occasions, weight watching, nutritional advice, cholesterol testing, yoga classes, and drug and alcohol awareness. Several seminars and workshops are arranged that are open for all employees and attendance in these is not mandatory. In order to measure the effectiveness of these services, the company has initiated taking employees’ feedback for the services that they receive. In addition, in- house competitions are arranged for employees by designing a intranet based pedometer linked with online learning. These initiatives have resulted in to less absenteeism. Employees are spending more time on the jobs; they are motivated towards work, and produce better results than before when the environment was dull and uninteresting. 2.3 Small Organisation Smaller organisations that are emerging and growing in the market also need to focus on the internal aspects of the companies, that is, the human resource. Employees are the greatest asset of an organisation they say, and small, young and emerging organisations are no different. An analysis of a relatively young software house is presented below. The company provides a vibrant work environment for its employees. Since the workforce is a mix of experienced software developers and newly graduated staff, the company provides on the job training to its employees so that they can better explore the arts and crafts of programming. In addition, the company offers flexible working hours for its employees that allow the staff to work on the orders as per there own schedule. This relieves the programmers from attending office on a specific time, rather they can come and go anytime as long as they complete the allocated assignment within the specified deadline (Softwire, n.d.). In addition, the company takes care of employee well being by providing opportunities for social interactions. Regular tournaments of pool, table football etc. are arranged in the office premises to refresh the stale minds, and to contribute in employees’ mental and physical well being. The results have been amazing so far. The company has doubled its size within eight months of starting up and is enjoying a roaring success (Softwire, n.d.). The employees are dedicated, hardworking, and above all, enjoy there work. 2.4 Manufacturing Organisation Komatsu UK Ltd. is a key subsidiary of Komatsu Ltd. in Japan, the world’s second largest manufacturer of construction equipment. The company achieved the Investors in People standard in 1991 when it was young (Capital Quality, n.d.). The company employs 700 people in the UK. In order to ensure that these employees keep their enthusiasm in work and continue to provide high quality services for the company, the company has adopted various approaches to train its employees in a wide range of topics. A ‘quality circle’ approach has been developed that draws people from different parts of the business to work on an issue or a problem. The decisions that are taken in these meetings are given due consideration, and in most of the times, these are adopted by the company. This practice gives a sense of empowerment to employees who feel that there voice is heard. As Fisher puts it "Competitive advantage comes from fully utilizing the discretionary effort of the workforce, not from buying the latest gadget or using the latest management fad. Voluntary effort comes from employee commitment, and commitment comes from empowerment." (Fisher, 1999). These efforts have resulted in a workforce that is highly skilled and dedicated, and that has developed a ‘sense of belonging’ with the company. They feel empowered and trusted; and are committed to provide their best service to the manufacturing business of the company. 2.5 The Organisation Under Review The organisation under review is a management and IT consultancy firm located in UK. Established in 1991, the company’s name is Cornwell Management Consultants plc; and employs almost 400 talented resources (Cornwell, 2007). The biggest human resource related issue that the management consultant industry faces in general, and Cornwell in particular, is the retention of employees. There is high turnover due to frequent movement of skilled resources in the industry, and the company suffers from the staff shortage as well. The company has provided a work environment that is conducive to learning; the consultants help each other out in performance of their duties and there is culture of informality and openness; yet there is a concern for high employee turn over rate among top management of the company. 3. A COMPARATIVE ANALYSIS In order to develop a comparative analysis between the companies discussed above and to draw conclusions, it is pertinent to develop the criteria and metrics that will be used for comparison. The comparison has been carried out based on the methodologies that the companies have adopted for employee well being and the benefits that they have accrued following those methods. 3.1 Similarities All the organisations that were reviewed consider employee well being to be an important part of their human resource management strategy. They are aware of the consequences of employee dissatisfaction and low morale. All the organisations discussed above have understood that better performance, high productivity, lesser absenteeism, and improved customer satisfaction can be obtained only if the employees are kept motivated, energetic, and pleased. Hence, every organisation has tried to address this issue using its own methodology, a specific set of procedures, and observing available budgetary limits. They have developed employee well-being programmes based on popular management theories like Maslow’s hierarchy of needs and Heizenburg two factor theories, which describe the approach that management can take to motivate its workforce to achieve the desired business objectives. 3.2 Differences Though the central idea or the objective of all the approaches is same, that is to improve employee well-being for improved business performance; yet there are some differences in the methodology that these companies have developed to tackle this issue. Mersytravel opted for continuous and online employee training and development courses to keep them informed of latest news and skills; and to provide them opportunities to enhance their skill set for personal and professional development. O2 adopted more of a soft skills approach, where yoga classes, cholesterol checks, etc. were arranged for employees to satisfy their social needs. These services have proved to be instrumental in developing non-work related activities in employees that in turn have contributed in developing a liking for workplace in employees, lesser rate of absenteeism and increased productivity. A similar sort of approach, though on a much reduced scale as compared to O2, is used by Softwire, a relatively small and emerging software house. Non-work related activities are arranged for employees allowing them to take a break from work occasionally and indulge into refreshing activities like a game of pool or table soccer. This enhances the employer-employee relationships, improves the social relationship among the company’s employees, and also develops a sense of liking in employees’ minds towards the company. The ultimate benefit is the reduction in employee turnover rate and a radical increase in efficiency and effectiveness in workplace. Komatsu UK has exploited the concept of employee empowerment by adopting quality circles in the company. The employees feel empowered and trusted by senior management when they are asked to think and provide solutions to complex problems based on their expertise in the field. Cornwell has developed safe and healthy environment for work and provides ambient workspace to its employees. However, the company is still facing some problems due to higher rate of turnover of talented employees. 4. RECOMMENDATIONS Cornwell is recommended to follow the successful models adopted by other organisations after suitably customizing it for their own environment. They should concentrate on the Maslow’s needs theory and should provide non-work related activities like in-house sports, annual corporate dinner, and training and development programmes for their employees who have higher needs for esteem, social gatherings and personal satisfaction. The company should also look into establishing reward and recognition system for its employees. The human resource department should be entrusted for development of employee well-being programmes on high priority. If these programmes are suitably developed and implemented, the company is expected to reap hefty benefits out of the change in employee morale and development of sense of belonging with the company. Not only will it reduce the turnover rate, but is also expected to improve employee throughput and productivity. REFERENCES 1. Accel Team. (2006). Employee Motivation: Fredrick Herzberg Two Factor Theory [Internet]. Available from: [Accessed 7 February 2007]. 2. Accel Team. (2006). Employee Motivation: Abraham Maslow’s hierarchy of needs [Intenet]. Available from: [Accessed 7 February 2007]. 3. Capital Quality. (n.d.). Komatsu UK Investors in People Case Study [Internet]. Available from: [Accessed 6 February 2007]. 4. CBI, The voice of business. (2006). O2: Voluntary health and well-being programme for staff [Internet], CSR Case Studies. Available from: [Accessed 5 February 2007]. 5. Cornwell Management Consultants. (2007). Key Personnel [Internet]. Available from: [Accessed 7 February 2007]. 6. Fisher, K. (1999), Leading Self-Directed Work Teams, McGraw-Hill. 7. Health and Safety Executives. (2002). Health and Safety Executives launches major initiative to highlight work-related stress [Internet], HSE Press Release E127:02 – 2 July 2002. Available from: [Accessed 6 February 2007]. 8. IDS HR Studies. (2006). Employee Health and Well Being [Internet], Incomes Data Services. Available from: [Accessed 5 February 2007]. 9. Investors In People. (2006). Case Studies [Internet]. Available from: [Accessed 6 February]. 10. Softwire. (n.d.). Employee Case Studies [Internet], Softwire. Available from: [Accessed 6 February 2007]. Appendix ‘A’ Cornwell Management Consultants Company Information Cornwell Management Consultants plc was created at the end of 1991 as Cornwell Affiliates to deliver cost-effective, high-quality, independent management consultancy services. Having floated on AIM in November 2004, Cornwell is now a highly successful mid-size consultancy with a 2005 turnover of £20.7 million. Cornwell’s Head Office is located in Effingham, Surrey and we now have additional offices in the City of London, Stratford-upon-Avon, Cardiff, Manchester, Edinburgh, Dublin and Melbourne Australia, reflecting the growth of our business and the distribution of clients. Commensurate with the financial growth of the company, we have also significantly increased our staff numbers to 110 directly employed, supplemented by around 300 associates. Further details about the company operations can be obtained from the company website at http://www.cornwell.co.uk/index.htm Read More