Valued Employee Program - Literature review Example

? Valued Employee Program Texas A&M Commerce In partial fulfillment of the requirements for MKT 521 Lloyd M. Basham April 20, 2012 Table of Contents Abstract………………………………………………………………………………………...3 Introduction……………………………………………………………………………………4 Labor force Situation ………………………………………………………………………….4 Reward and Recognition………………………………………………………………………6 Valued Employee Program…………………………………………………………………….6 Other Incentives……………………………………………………………………………….8 Ensuring Success to the Program………………………………………………………………9 Conclusion …………………………………………………………………………………....10 References…………………………………………………………………………………….12 Appendix……………………………………………………………………………………...13 Appendix A…………………………………………………………………………………...14 Abstract Due to the global recession, the world is also experiencing global employability crisis especially in the country. To answer this problem, new talents must be found. This can be achieved by renewing business and management strategies. This would also include a program to enhance talent already in the company. Rewards and recognitions must be given either formally or informally. Other incentives may also be given. Successful implementation of these programs or strategies would contribute to the success of the company. Keywords: Rewards and recognition, valuing employees, global employability crisis Valued Employee Program Introduction “People are definitely a company's greatest asset because a company is only as good as the people it keeps.” This is a famous quote from Mary Kay Ash, a very successful American businesswoman. For a company to be a globally competitive one, it should know how to make its people competitive at the same time knowing how to keep them for long-term. This means having or discovering new talents and also giving rewards and recognitions to employees. According to Gallop (2006) as cited by Ascent Group (2008), companies with high levels of employee satisfaction enjoyed higher return on investment. This is what our program wants to achieve. Satisfaction to the employee like rewards, recognitions, benefits, incentives, bonuses and satisfaction to the company in terms of increased sales, revenues and profits and also credibility will be achieved. Labor Force Situation As leaders transition toward growth, there is an increased focus on human capital which involves identifying and actively engaging the most critical employees, rapidly aligning the workforce around change and ensuring getting most of the dollar they spent (Aon Hewitt, 2011). Also, according to ManpowerGroup (2011), talent becomes increasingly difficult to find heading towards a global employability crisis. This means lesser assets to the company. Companies must reconsider work models and workforce strategies to execute their business strategies. Old assumptions on structure and organization of work plus the development of talent must be changed so as not to put the business in danger. These new strategies entail much effort to be put upon. It is becoming more and more difficult to find and engage the right employees (Ascent Group, 2011). Thus, more jobs are being difficult to fill. Based from the 2011 Talent Shortage Survey by the ManpowerGroup, the Top 10 Jobs Employers are Having Difficulty Filling Globally are as follows: 1) technicians; 2) sales representatives; 3) skilled trades workers; 4) engineers; 5) laborers; 6) management/executives; 7) accounting and finance staff; 8) IT staff; 9) production operators; and 10) secretaries and office assistants. It can be seen that most of these jobs are in the manufacturing sector and as stated earlier, it was the manufacturing company that helped the economy rise after the economic recession. Figure 1 shows a representation of percentage of employers having difficulty filling jobs due to lack of available talents (ManpowerGroup, 2011). These talents must be found to help the company’s workforce to be better and more efficient. Skills needed back then by employees are much different now. For example, a salesperson back then only needed to be assertive, has a thorough knowledge of product and competitive. Now, a salesperson has to be excellent in oral and communication skills, is a critical thinker/problem solver, must have first-rate organization skills and with integrity and perseverance in order to fuel revenue growth even when margin remain slim (ManpowerGroup, 2011). According to the same group, a “teachable fit” salesperson must have the knowledge, skills, values and mindset (inside-out minded, goal oriented) plus personality and intelligence (assertive, competitive, persuasive) factors. Back then, employers tend to settle for available candidates, find the teachable fit, and stretch the existing workforce. Now, they are forced to develop a robust workforce strategy (ManpowerGroup, 2011). According to them, robust workforce strategy should be based on the company’s business strategy and be able to identify the gaps between the talent available and talent needed. It should consider important external factors that could affect future talent sources, such as changes in demography, the rise in emerging markets, and rapidly evolving technology. However, business strategy is worthless without the workforce. Aside from finding the talents for one company, another thing to consider in the global employability crisis is keeping and developing the talents which one already has. Reward and Recognition According to Aon Hewitt (2011), total rewards play a significant role in engaging a workforce. Igniting a high-performance culture may well have to start with engaging the workforce. Highly engaged employees provide higher value being more efficient and having quality products and services thereby fulfilling the goal of customer satisfaction. Yet, tight labor markets are making companies think twice about compensation packages, benefits, and incentives. Turnover and competition are pushing companies to focus on ways to keep qualified employees happy and motivated (Ascent Group, 2011). Rewards and recognitions is a challenge which must be addressed to keep a better workforce. Recognition is like anything else, it requires time, attention, and a consistent approach (Ascent Group, 2011). Employers must be watchful to identify opportunities to recognize and reward performance. Employee involvement, together with good administration and communication they say is the key in rewards and recognition. Valued Employee Program This program aims to give credit and importance to the workforce at the same time giving value to the organization. This will not only take place in just one night as they usually do but that one night will only be a culmination of a year-long program of reward and recognition. For the company, cost of this program will be evaluated and assessed. The success will also be evaluated by gathering data regarding turnover, tenure, employee satisfaction, productivity, employee involvement, sales & profitability and customer satisfaction. This program will be laid straightforward and simplified especially to the employees. It is important that employees understand what it takes to be recognized or rewarded and each has a role in judging his/her performance (Leadership and Motivation Training, n.d.). Focus will be given based from the Ascent Group Rewards and Recognition Program (2011). The management will ask employees, via surveys, focus groups, group meetings, or team involvement, what they value most, in terms of recognition, rewards. Management will then align rewards with employee expectations to focus employees on behaviors to be given incentive. Aside from that, the management will also ask employees to assess themselves if they are growing their skills in the company. Recognition and rewards can be formal and informal. Informal recognitions, which are spontaneous and immediate, are made sure to be carried out. The Ascent Group (2011) pointed out that in fact, most of a company’s recognition activity should be informal. It indicates a culture or atmosphere that acknowledges good behavior when it happens. Simple “thank you” and praises will be given to good and satisfactory performances. We would make sure that the employees would know how to acknowledge themselves and their efforts, praising the behaviors instead of the person and pointing out what was praised so they know in what aspects they can excel. Formal rewards may be minor or major ones. Minor awards are those for employees without absences or tardiness for a period of 3 to 6 months. They will be given certificates and may be gift cheques. For a quarterly basis, those without tardiness and absences will be recognized. For major awards, like the “Employee of the Year” or “Most Improved Employee” or “Top 50 Employees” would be given during the awards night for different work categories. Loyalty awards will also be given to those that were in the company for 5, 10, 15 or more than 15 years. Each will receive plaques as recognitions for their job well done. Cash may be given to them aside from tokens. Also, non-cash rewards such as sponsored vacations home showcases may be given. For salespersons, the ones who can deliver the most sales had the most satisfied customers must also be given awards. Those who can bring much sale to the company will have incentives such as percentage cut of their sales, additional bonuses and others. Holiday bonuses may also be given because during these times that people tend to be productive and have many things they want to acquire or the places they want to visit. Other Incentives Aside from these rewards and recognitions, incentives and practices will be given as to make the whole program a success translating to higher ROI and employee satisfaction. The 500 workers/ employees on the site will have a diverse, meaningful and challenging work from time to time as to make them as enthusiastic as possible every day. Aside from these, there must be opportunities for career advancement, regular training and development and giving security of tenure. Regularly, skills will be assessed and development plus trainings will be held or given to those who have great potentials for improvement. On working conditions, the company will have to shed a little money to upgrade its facilities to enhance work and also will give flexible working hours especially those working in the office area like bigger personnel space and good ventilation and lighting. Regular team building activities will also be done especially when deemed needed. Financially, bonuses and increase in salary will be agreed upon by the management before its implementation. Through these incentives, overtime work will be avoided. Employees will be motivated to start their work on time and finish on time. This will translate into company savings and employees having good performance because working overtime does not always necessarily mean better employees and better work. From Figure 1 (U.S. Bureau of Labor Statistics, Institut fur Arbeitsmarkt- und Berufsforschung, 2011 as cited by ManpowerGroup, 2011) it can be seen that overtime work is now increasing in the country as of last year, almost same as Germany’s (developed country with most overtime work). Electricity and utility cost would be higher with this higher trend making liabilities larger which is not advisable. We will make sure that the company will deviate to what is happening in Germany and may be some parts of the world or the country. Ensuring Success to the Program Success of the program is not ensured unless properly agreed upon and properly implemented. Employees must come away with their sense of self-determination and control over what they do enhance and they must feel they are not being controlled or manipulated (Learning and Motivation Training, n.d.). With this program, competition will not be avoided. To ensure healthy competition, management must execute the reward and recognition program plus giving incentives with as much as little bias as possible. Top management will look over those on higher positions then those will look after supervisors up to the subordinate level. It will be the top management to look at another. When favoritism comes into play, envy and greed may prevail thus, not satisfying the objectives. Employees will not be satisfied producing unsatisfied results to the company. This must be the things to be avoided. Healthy competition must always prevail. Corporate greed must also be avoided so that not only those who on top will prosper. In terms of motivation, it varies per employee. It is important to know and respond to each employee’s niches. It must be looked upon and given focus. Motivation for one and motivation for all would spell a better workplace, better employee and better company. Though this program might cost the company some money but if properly implemented would be higher and may be way beyond our expectations. The awards night itself may entail much money due to preparations, all the details and the fun and camaraderie it may bring. Also, the incentives and bonuses plus those for non-cash rewards and recognitions may require year-long efforts but it would be all worth it. An in-depth financial analysis must be made to support the success of the program. Proper accounting, auditing, recognition are needed. Also expenses and revenues must be properly predicted and assessed after the end of the year. It would be like investing and making that investment work for you. That would also entail making that investment grow, like growing a plant. You need to water it and give it care for it to flourish and give you happiness and contentment. Conclusion The world will be experiencing global employability crisis. With this crisis, talents needed for the development, growth and competitiveness of one company are hard to find. To solve this, a company must be able to rethink of business strategies to discover those talents which are essential for the human age. Also, a company has a choice to develop talent already inside. Developing those talents entails investing for the employees like providing good working conditions and benefits. Valuing employees by rewards and recognitions is also a must. This may entail additional investment but it is a must to keep the company and its employees be competitive and at the same time prosperous and satisfied. When valued well, the employees will become the treasure of the company. That program is a must. It will be a big development to the company. As a concluding statement, Mary Kay Ash also said, “We treat our people like royalty. If you honor and serve the people who work for you, they will honor and serve you.” References Aon Hewitt. (2011). 2011 Talent Survey. Retrieved April 19, 2012 from http://www.ksmartin.com/files/Articles/Aon_Hewitt_2011_Talent_Survey.pdf ManpowerGroup. (2011). 2011 Talent Shortage Survey. ManpowerGroup website. Retrived April 19, 2012 from http://us.manpower.com/us/en/multimedia/2011-Talent-Shortage-Survey.pdf ManpowerGroup. (2011). 2011 “Manufacturing” Talent for the Human Age. ManpowerGroup website. Retrived April 19, 2012 from http://us.manpower.com/us/en/multimedia//ManufacturingTalent.pdf Ascent Group. (2008). Reward & Recognition Program Profiles & Best Practices 2008. Purdue University. Retrived April 19, 2012 from http://www.cfs.purdue.edu/richardfeinberg/callcenterpapers/RewardsSummary.pdf Leadership and Motivation Training. (n.d.) Leadership and Motivation Training. Retrieved April 20, 2012 from http://www.leadership-and-motivation-training.com/ways-to-reward-employees.html Appendix Appendix A Percentage of Employers having Difficulty Filling Jobs due to Lack of Available Talent Source: ManpowerGroup, 2011 Overtime Trends Source: U.S. Bureau of Labor Statistics, Institut fur Arbeitsmarkt- und Berufsforschung, 2011 as cited by ManpowerGroup, 2011 Read More