Fair Pay And Key Methods Of Motivated Employees Commerce Essay

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With the development of international business, many companies find different methods to improve the working efficiency of their employees. The one of the most important is motivation. The definition of motivation is making the employees be interest and carrying on their work (Business Dictionary, 2010). According to Hall (2008) it is very important to use the motivation method. If a company lacks of motivation, it will reduce the employees' effort and commitment in the short run. Furthermore it will increase the absenteeism and industrial disputes of the workers so that lessen the production and the profit in the long term (Hall, 2010). There are different theories of motivation from Taylor, Maslow, Hertzberg, Mago and Vroom (Hall, 2008). Fred Taylor stated that the best way to motivate employees is paying money in order to raise the workers and the managers' efficiency (Hall, 2008). His theory means that financial method is enough to motivate employees. Abraham Maslow listed the classification of needs which includes physiological needs, safety needs, love and belonging, esteem needs and self-actualization (Hall, 2008). Hertzberg divided motivation into two factors, motivators and hygiene or maintenance factors. About motivators, he stated that the most important motivation for the employees is worthwhile of their working, such as achievement. For maintenance factors, prevent dissatisfactions, including pay, conditions and treatment, is needed for motivating (Hall, 2008). His theory combined both financial and non-financial motivation. According to Elton Mayo the most important factor of motivation is environment and job security (Hall, 2008) which emphases the importance of non-financial method to motivate the employees. Vroom suggested that the factors of motivating including pay, security and good environment (Hall, 2008). His states evidence that fair pay and non-financial are both important to motivate employees. Financial methods of motivation are widely used in many companies, such as fringe benefit and profit sharing. However, financial motivation method can not satisfy the needs of workers except for money, for instance security and job environment. Therefore, companies need to use non-financial motivation like job enlargement and team working. All in all, the company need the combination of fair pay and non-financial method of motivation to increase the interest and loyal of the employees.

Financial method of motivation have a widely used in business organization and indeed have a good effect to motivate workers. Financial method includes wages and salaries, piece rate, fringe benefits, performance-related pay, profit sharing and share ownership. Fringe benefits are a kind of 'perks' that the employees being paid apart from wages and salaries, including company car, pensions, private health insurance and free meal (Hall, 2009). Fringe benefit is widely used in business organization because it can satisfy the employees' physiological, safety, belonging, esteem and self-actualization needs which are the requirement of Maslow's hierarchy (Hall, 2009). For instance, the company Carphone Warehouse provides the workers healthcare, pensions and health assurance to increase their motivation in order to improve the efficiency and productivity of the company and McDonald supply their free meal, free life insurance and stakeholder pension to increase the interest and loyalty of employees (Bized, 2010). Profit sharing is some profits of the workers are equal to the shareholders (Tutor2u, 2010). Profit sharing is regarded as the common goals that all the employees want to achieve. Thus, profit sharing can establish the cooperation among the employees so that increase productively, lessen the costs and turnover (Referenceforbusiness, 2010). Furthermore, employees can take advantage of the appreciation from the company and find that they have a real position of the company (Hall, 2009). According to Maslow's hierarchy, profit sharing can fulfill the workers' love and belong needs (Hall, 2009). Consequently, profit sharing is a profitable financial method for a number of companies to motivate their employees. For example, the company Sainsbury's furnishes their employees with 50 percent of the company share and the employees in BAA have 700 pounds profit share per year (Bized, 2010). Indeed, financial method of motivation like fringe benefit and profit sharing can satisfy the needs of the employees and have some good effect to motivate the workers. However, fair pay is not enough for employees' motivation with the development of the company. According the Vroom's theory, the firms need to content the workers with the need of pay, security and good working environment (Hall, 2009). Companies can use fringe benefit to satisfy employees' financial needs, such as free car parking and pension. Profit sharing can make some profit of workers equal to the shareholders. However, both of these methods can not satisfy the servant's further demand of work environment. As a result, companies need non-financial method of motivation to compensate the shortages of fair pay.

Non-financial method of motivation can satisfy the further needs of employees except for the pay. There are different systems of non-financial motivation method, including job enrichment, job enlargement, team working and empowerment. Job enrichment, which also called job expansion, is a kind of method to increase the servants' reasonability in order to improve their motivation (Bussinessdictionary, 2010). According to Hall (2009) job enlargement enhance the interest, challenge of the employees' works, so that it can meliorate their unused skills and improve productively. Training the workers is one kind of ways to job enrichment. The employees' training can provide the workers with the challenging and complex job. As a consequence, it can increase the employees' interest, improve their skills and raise the motivation of the employees. For example, the company NO.31 Hair and Beauty provide training opportunities to employees (Bized, 2009). Therefore, the workers have more motivation because it has increased the interest and challenge of their job and their working skills can also be improved during their working. At the company Carphone Warehouse, training and development is also regarded as an important motivation method (Bized, 2010). In addition, team working is momentous system of non-financial motivation. Team working is make the servants work in a group or team (Tutor, 2009). Hall (2009) stated that employees can learn skills and knowledge from each other and brainstorming ideas in team working, so it will gather the talents to increase the production and solve some business problems. In many companies, team working is used to motivate the employees. At the company starburcks, team working makes the employees conversant with fellow workers and learns the skills and knowledge from them, so that they can fulfill their demand in the team (Freeonlineresearchpaper, 2009). In short, non-financial method of motivation can meet the employees' need of working environment. Nowadays, people have a job is not only for life, they want to find a job which their interested in and feel more challenging (Bized, 2005). Therefore, non-financial motivation can offset the deficiency of fair pay which can not satisfy the servants' needs of working environment.

In conclusion, the best way to motivate employees is combine the fair pay and non-financial motivation. Financial method can motivate the servants because it can satisfy their needs in pay and security. Non-financial method of motivation can provide the workers good environment which can fulfill their satisfy need. For example, the company Kettleby Foods, they believed that people are the most important role in business process. Thus, they found some efficient motivation method, which is the combination of financial and non-financial method, to increase their interest and loyal. They use profit sharing scheme to pay for the workers' family holiday and Christmas presents in order to avoid the waste, they also provide the employees with private medical insurance. Moreover, the company offers the job rotation and training opportunity to the workers (Bized, 2009). All in all, the integration of the fair pay and non-financial motivation method has the best efficiency to satisfy the employees.

Reference section

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