Studies have proven that the morale of a company's workforce is directly linked to profitability. Studies have also shown that low morale equals low profits and high morale equals high profits. This is because workers who are happy in their job and with their employer perform better, resulting in higher and improved productivity and profitability. According to Rozycki (2008), an incentive program is a planned activity designed to motivate people to achieve predetermined organizational objectives. In other words, it is a planned activity that encourages people to do what it is companies want them to do.
Tasks of Managers The success of any organization depends on the ability of managers to provide a motivating environment for its employees. Motivated employees are more productive, happier, and stay with the organization longer. One of the primary tasks a manager faces is to find out what motivates their staff. By understanding employee needs, managers can understand what rewards to use to motivate them. Abraham Maslow proposed the theory called hierarchy of needs theory (370-396).
The main problem under study in this research is “The impact of human resource practices on the retention of employees”. Effective employee retention is the result of systematic attempt by employers. It needs to develop and establish an environment that attracts employees to stay in the organization by following policies and practices in place that meet their needs. It also concerns with the costs associated with employee turnover. Hiring a new employee costs are usually 2.5 times the salary of an individual.
When an organization offers competitive pay, pension, health plans, tuition reimbursement, bonus programs, and paid time off, this sends a message to employees about their importance to an organization. The rewards given to employees must be meaningful in order to impact their perception of the organization and therefore have a marked influence on its retention efforts. Secondly, to retain an employee, there must be a presence of empowerment felt by the employee. Empowerment in the sense of the workforce is getting the employees to do what is needed to be done rather than being told what to do. When an employee feels a sense of ownership in their job, the employee will put the effort into their responsibilities.
The situational occurrences theory of job satisfaction. Human Relations, 45(8), 859-873. Retrieved from http://search.proquest.com/docview/231487467?accountid=32521 Ramlall, S. (2004). A review of employee motivation theories and their implications for employee retention within organizations. Journal of American Academy of Business, Cambridge, 5(1), 52-63.
The succeeding paragraphs will explain how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In order to maintain their competitive edge, companies need to fully understand that as the needs of their employee’s change, so does their benefit plans. Companies need to find innovative ways of engaging employees that encourage and support their commitment and improve their performance. The first way is by helping the company to attract and retain talent. A company is only as good as its workforce so having an innovative benefit plan will help to attract high potential candidates and also retain them within the organization.
Pp.331-362). Employees who are satisfied with the factors and incentives being provided by the organization are more likely to be motivated to perform better, which is completely different from the past. For instance, if an employee feels he or she does not have enough knowledge about a certain department in the organization, the management can fulfill his or her esteem factor by planning a career
Motivation theories are unique to each organization. Some organizations have come up with motivation theories such as setting work goals, job performance evaluations, and fair treatment policies within the work environment to keep employees motivated. The impact that individuals, groups and structures have on behavior within organizations is Organizational Behavior. Motivation is affected by organizational behaviors, which is why different organizations apply motivation theories to motivate employees. Applying Motivation Theories to Motivate Employees Keeping workers motivated in today workplace can be not just a job, but also an adventure.