Tuesday, 7 May 2013

Employee Relation



Introduction

This blog demonstrates the examples of how organisations communicate with their employees including both upward and downward methods. Also describes the advantages of methods that employees can participate and involve in to organisation operations to meet the success. Furthermore it illustrates how it links with Maslow’s motivation theory.

Employee Relation

Employee relation is “an assortment of employer initiatives for improving workplace communications, for engaging employees either directly or indirectly in decision making and for securing employee compliance with management rules through disciplinary action” (Bratton & Gold, 2012)

Employee Engagement

According to cipd definition employee engagement is a combination of commitment to the organisation and its values and a willingness to help out colleagues. There are four main enablers of employee engagement which are,
  1. Provide strong strategic narrative about the organisation
  2. Engaging managers who focus on their people
  3. Organisational integrity
  4. Employee voice   (Northern Ireland Business, 2013)

Employee Voice


Employee voice is communication between employee and employer. It consists with two ways that employer communicate with employee which called downward communication and well as employee communicate with employer which called upward communication. It is very important to maintain an effective employee voice programmes to attract and retain staff in an organisation.

Example of how companies communicate with employees

This example following illustrates how Tesco, UK’s largest retailer how preserve communication with its employees. Tesco PLC has the UK’s largest private sector work force with 519 671 employees. Tesco has won the award of communication strategy of the year at the employee benefit award 2009 because of its simple and cost efficient way in communicate with employees. These are some method of communication strategy in Tesco and some advantages of each method.

Downward methods

  1. Meetings- Meetings are two way communication methods that both employer and employee can give their feedback  Tesco holds staff meetings every month which discusses their problems, new ideas, new promotions etc. It is a very good method as it helps to clear communication without any misunderstandings.
  2. New letters- Tesco publishes newspaper monthly to share information with their employees. It helps to share knowledge at once with their employees and editorial content with their goals and strategic objectives. It is good method to pass massages to employees about organisation’s goals, aims and also achievements.
  3. Notices- Displaying notices on staff notice board is a simple and effective communication method to remind about staff meetings, how to promote new promotions, employee recognition and also targets and aims of the periods.
  4. Letters/ E-mails- It is an important source of communication method to prove legally that information has sent to employees. And also e- mail is a quick and cost efficient method of communication with large number of its employees.
  5. Online training programmes- Online training programmes, video clips are important to effectiveness of communicating areas such as new promotions, new technologies that employees must be familiar with. Tesco’s employees can log on to the Tesco learning portal to get all the information about their career development and further training. (Ward, 2012) (Sullivan, 2009)

Upward methods

  1. Annual staff survey-Tesco’s annual staff survey called viewpoint is very effective and confidential communication method to get feedback from employees. It is a great chance to make effective employee voice for any problems they are facing in the work place. In 2010/2011 over 90% of its employees have participated in this survey.
  2. Meetings- Meeting is a both upward and downward method that both parties allow to give feedback  listen to each other’s views.
  3. Trade unions-Every employee has a right to join with Tesco’s trade union which is a grade chance to give ideas, views of employees.
  4. Whistle – Blowing- There is a 24 hour service telephone line and email address to raise ethical issues and any kind of employee issues in every Tesco’s stores which is called whistle –blowing.
  5. Store and depot forums/ Intranet-Tesco is continuing regular communication through face to face briefing, depot forums and also store intranet with their all employees.(Tesco PLC,2012)

Employee involvement and participation

According to Hyman and Mason (1995) Employee participation can define as collective rights of employees to become involved in decision making in the organisation. Employee involvement is regular participation of employees in decision making, goal settings, planning and monitoring their performances. Through effective and efficient communication in an organisation motivate employee involvement and participation. All the examples of communication methods above promote employee involvement as described. (Daniels, 2006)

How they link with Maslow’s Theory of Motivation



Maslow’s theory of motivation represents that human beings has a hierarchy of needs. It shows that basic needs must be fulfilled before climb for other complex needs. Physiological needs are basic need of a human being such as foods, drinks, sleep etc. Safety needs can be categorize as feel secure and shelter. Social needs are like feel a part of a group, acceptance and recognition. Self-esteem needs are complex such as feeling good about themselves and also recognition for achievements. Top level of the hierarchy can define as the need of personal fulfillment which is called self- actualization.
 When comparing with an organisation it links with motivation theory as follows. Within an organisation basic needs consist with basic salary, protection for personnel belongings at work etc. The second step of hierarchy which is called safety needs consist with protection against unemployment; ensure health and safety in a work place etc. Furthermore, communication, working as groups are can be categorize under social needs. If there is an effective communication in an organisation employees can fulfill their social needs and it is an effective motivation method. Self-esteem need is about receiving recognition for job well done, promotions, respect for each- others. Most of the positive feedback through communications, and acceptance and appreciation through upward communication can be define under self-esteem. The top level of needs could fulfill with rewards for personal performances, and through career progression programmes and opportunities.
(Relay, 2012)

Conclusion

Employee relation is combination of employee engagement and involvement. And also employee engagement consists with employee voice which has two ways communication called upward and downward. Different organisations use different strategies for effective communication. This blog illustrates Tesco’s communication strategies as the largest retailer in UK and also the advantages and also employee involvement and participation in each communication method. Furthermore it describes the connection with Maslow’s theory of motivation within an organisation.

References

Daniels, K., 2006. Employee Relations. 1st ed. London: CIPD.
Nothern Ireland Business, 2013. Employee engagement. [Online]
Available at: http://www.nibusinessinfo.co.uk/content/enablers-employee-engagement
[Accessed 5 May 2013].
Relay, J., 2012. Motivation Theory. [Online]
Available at: http://www.tutor2u.net/business/people/motivation_theory_maslow.asp
[Accessed 8 MAy 2013].
Sullivan, N., 2009. Tesco wins award for benefits communication strategy. [Online]
Available at: http://www.employeebenefits.co.uk/tesco-wins-award-for-benefits-communication-strategy/9289.article
[Accessed 5 May 2013].
Tesco PLC, 2012. Communication. [Online]
Available at: http://www.tescoplc.com/site/library/policiesandfactsheets/communication.htm
[Accessed 5 May 2013].
Ward, E., 2012. Bdaily. [Online]
Available at: http://bdaily.co.uk/entrepreneurship/17-07-2012/tesco-and-summersault-communications-team-up-to-produce/
[Accessed 05 May 2013].

Saturday, 4 May 2013

Rewards


Introduction

This blog demonstrates a brief explanation and comparison between one of the companies from the Times top 100 SME companies for work and one from the Times top 100 large organisations. It contains with financial and Non-Financial rewards systems of each company offer their employees. Furthermore blog illustrates the contrast of the approaches used by these two different companies and the reasons might be affected to these differences.

Rewards

Reward management is about the design, implementation, maintenance, communication and evolution of reward process which help organisations to improve performances and achieve their objectives. (Murlis, 1994)
A reward system in an organisation consists with financial and non-financial components. Some examples for financial rewards are
  • Basic salary
  • Performance Bonuses
  • Travelling Allowances
  • Company Car
  • Medical schemes
  • Commissions
  • Profit sharing schemes   etc. 
Some examples for Non- Financial rewards are
  • Recognition
  • Job enlargement
  • Job rotations
  • Work life balance
  • Flexible working
  • Opportunity to develop skills etc.

Why do companies offer rewards to their employees

  • To attract and retain skilled/qualified employees
  • Improve individual corporate performances
  • Improve employee motivation to contribute to their maximum
  • To support the corporate strategy
  • Comply with legal obligations
  • To maintain equity

TGI FRiDAYS

According to the Times 2013 rankings, FRiDAY is one of the top 100 large companies which has achieved 3rd place in rank. It is an American Restaurant Chain for casual dining which has spread in 61 countries all over the world with their promise of “In here, it’s always Friday”. TGI FRiDAYS was founded in 1972 and it has achieved and met with success along this history.  In UK FRiDAYS chain has 4114 employees to meet the customer requirements. FRiDAYS offers number of rewards financial and non- financial to their employees.

Financial rewards offer to employees

  1. Great health care coverage including medical, dental, vision – FRiDAYS provide great health care package to all their team members to motivate and inspired them in work with.
  2. Paid vacations- Team members may offered by paid vacations to get a chance to enjoy with their friends and family to ensure relax for their busy lives.
  3. Dining discounts- Team members have special discount package to dining themselves and also for their families.
  4. Home and auto insurances- FRiDAYS offers home and auto insurance schemes for employees via payroll deductions.
  5. Performances related pay- Team members offered overtime pay, considerable hourly rate, bonuses on achieving targets for inspire their individual contribution to the organisation
  6. Educational Assistance- Team members who are working while studying have opportunities to apply for student loans and tuition reimbursements for their future prosperity.

Non-Financial rewards offer to employees

  1. Work life balance-It is great a reward the team members offered which helps to increase the value of life by balancing both career and their personnel life.
  2. Flexible working- FRiDAYS offer flexible working for everyone and it is an opportunity to team members who are working while continuing their studies.
  3. Wellness programmes- The programmes help to promote good health and safety habits is a non-financial reward customers offered. 
  4. Leave of absence- Employees may offer leave for the period of time which they are absent from work.
  5. Recognition- For appreciate individual performances team members are recognised through staff notice boards, staff meetings and newsletters.

(T.G.I. FRiDAYS, 2013)

Cloudreach

According to the Sunday Times 2013 ranking results, Cloudreach is the number 1 small company for work. Cloudreach relates to internet consult sector and mainly located in London and Edinburgh with the staff of 54 employees. Cloudreach provide wide range of services such as consultancy, migration services, develop applications and managed services. Employees meet the success of their customer requirements with their 4 values called respect individual and individuality, be easy to work, promote personnel growth and be one step ahead. As the best small company for work cloudreach provides wide range of reward system to their employees. Therefore some examples are following,

Financial Rewards

  1. Performances related pay- Employees offered Annual bonus of 10% of basic salary base on individual performances.
  2. Retirement planning- Stakeholder pension scheme with Aviva provide to employees to improve motivation.
  3. Share options- Company share options award to employees by reviewing annual performances.
  4. Child care vouchers
  5. Free breakfast and lunches- All employees may provide breakfast in company kitchen and lunches from restaurants around office location.
  6. Paid holidays- Offer 25 days per year plus extra day for each full year as paid holidays.

Non- Financial Rewards

  1. Recognition- Cloudreach provides great recognition within the company when the employees reach to their defined goals and targets.
  2. Flexible working- Employees has chance to work flexibly to increase the creativity and innovations which could make benefits to the organisation.
  3. Work life balance- Friendly and relax working environment, day off for the birthday, day outing for lunches, holiday offers are some of the best reasons for balancing the work and the personnel life for employees in Cloudreach.
  4. Guidance and support for develop skills- It is a great opportunity to employees that they are appointing to a training programmes with high technologies to develop their skills and practices.
  5. Career opportunities- Employees may offer some career opportunities with their partners including organisations such as Amazon and Google.

(Cloudreach, 2013)
(The Sunday Times, 2013)

Contrast in reward systems and reasons for the differences

When comparing the rewards strategies of cloudreach and FRiDAYS there are some differences. Both of them offer performance related payments and paid holidays to achieve their own business goals through gaining maximum individual contribution to the organisation and they are effective stimulating strategies most of the companies used. FRiDAYS offer medical coverage schemes, home and auto insurance schemes while Cloudreach offer retirement planning and stock options to recruit and retain high performers to meet the success of the organisation. Dining discounts at FRiDAYS, support for student loans and tuition fees and child care vouchers offer Cloudreach, provide breakfasts and lunches are some of the strategies to maintain market competitiveness and to achieve good public image about the organisations.
When considering non- financial rewards strategies both of these organisations have similar strategies. But he reasons and aims can be different when they are structuring their own policies. The reasons could be recruiting and retain skilled staff, increase productivity through improving employees mental relaxation, achieve market competitiveness, support career development and career progression or maintain internal equity.
However, different organisations observe different reward strategies according to their aims and goals, organisation’s culture, financial stability, degree of the competition. (Chartered Institute of Personnel and Development, 2007)

Conclusion

Organisations observe different reward strategies due to different reasons. Therefore an example demonstarate, FRiDAYS one of the top 100 best large company and Cloudreach on of the top 100 best small company to work  the different rewards methods they use both financially and non- financially.

References

Chartered Institute of Personnel and Development, 2007. Reward Management. [Online]
Available at: http://www.cipd.co.uk/NR/rdonlyres/08FE4AE7-7DD5-4185-9070-F34225A6EB0C/0/rewmansr0107.pdf
[Accessed 3 May 2013].
Cloudreach, 2013. Work with us. [Online]
Available at: https://cloudreach.recruiterbox.com/jobs/6104
[Accessed 2 May 2013].
Murlis, M. A. a. H., 1994. Reward Management. 3rd ed. London: Kogan Page Limited.
T.G.I. FRiDAYS, 2013. The benifit of FRiDAYS. [Online]
Available at: http://www.tgifridays.com/jobs-benefits
[Accessed 1 May 2013].
The Sunday Times, 2013. Cloudreach. [Online]
Available at: http://features.thesundaytimes.co.uk/public/best100companies/live/template
[Accessed 2 May 2013].