Employee Rewards vs Poor Motivation in a Restaurant - Essay Example

Several factors were examined in various types of research which tackled the issue of employee turnover. Blomme, Tromp, and Van Rheede (2008) suggested that performance rewards may be positive predictors of turnover; whereas, Robinson and Barron (2007) argued that low job satisfaction, not extrinsic rewards, are strongly associated with turnover. Theoretically, however, Jones, et al. (2003) maintained that recognition and appreciation, as well as a system of rewards, are necessary to boost employee motivation. In this regard, Walker and Miller (2010) consider incentive pay, bonuses, and even non-monetary rewards to be effective modes of developing motivation, provided that the motivators used are congruent with employees’ needs and desires or that the motivators may be associated with their reasons for working.

A look at the motivator-hygiene or two-factor theory enunciated by Frederick Herzberg in the late 1950s posited that motivating factors are intrinsic elements of a job that lead to the satisfaction of an employee, while hygiene factors are the extrinsic elements of the work setting which cause dissatisfaction of an employee. Motivating factors are also called job satisfiers, which include achievement, recognition, the work itself, responsibility, advancement, and growth. On the other hand, hygiene factors are also termed as job dissatisfiers, and consist of company policy, supervision, working conditions, interpersonal relationships at work, salary and benefits, and job security (Gitman & McDaniel, 2009).

Accordingly, Herzberg’s motivator-hygiene theory considered the rewards system (i.e., salary and benefits as job dissatisfier; whereas Jones, et al. (2003) and Walker and Miller (2010) among others, believe otherwise. Moreover, Landy and Conte (2010) underscored the significance of examining the “level of success with various motivators to know how to increase or maintain work motivation for any individual” (p. 367). It is in the context of Landy and Conte’s assertion that this study is being proposed to investigate the relationship between employee rewards and motivation in a UK restaurant.

Employee rewards may be classified as extrinsic (monetary) or intrinsic (non-monetary/intangible). Extrinsic rewards may be provided by employers to attract or retain employees, boost employee output, or reduce employee dissatisfaction. Extrinsic rewards are usually in the form of money or things with financial value. On the other hand, intrinsic rewards are usually related to job responsibility, work achievement, and the job itself. Intrinsic rewards usually entail a deeper and lasting impact on employee motivation (Armstrong, 2005).

Examples of extrinsic rewards include: paid holiday leave, retirement plans, health care plans, worker’s compensation, disability insurance, life insurance, housing, company car, mobile phone, and laptops (Shields, 2007). Management may provide rewards based on an employee’s achievements through base pay increases or performance bonuses (Robertson, 2007). Furthermore, employers may also consider providing company shares, discount loans, discount travel and accommodations, product or service discounts, clothing, subsidized canteens, club or gym membership, self-education expenses, and education allowances for dependents (Shields, 2007).

New approaches adopted by managers include benefits such as flexible work-time and work-life balance programs (Shields, 2007), and employee recognition programs (Robbins, 2009). Some employers have developed online-based rewards systems that allow employees to choose their rewards based on accumulated points determined by a set of criteria or rules (Cook, 2008).