Business Management Final
BUS 645: Human Resources Approach to Employee retention through Rewards Programs.
Kelly Scaduto
Ashford University
Dr. Jonathon Green
Final Paper
04/15/2013
There are many factors affecting a company’s success in delivering a consistent level of performance that meets the needs of their customers and exceeds the quality of their competitors. One of the main contributors to the level of service provided are the employees that represent the company. As many companies have been impacted by the downturned economy they have been forced to restructure wages, eliminate bonus, enact hiring freezes and lay off employees, shifting a much heavier workload on the employees left behind. ILD Telecommunications, a third party billing company, is no exception to this rule and beginning in 2009 enacted all of the measures mentioned. However, as the company began to struggle so did productivity. Employees were forced to remain in the workplace because there wasn’t anywhere else to go. With unemployment rates at an all-time high employees were resigned to stay put, but with the loss of motivation and commitment that once supported the company in its time of highest achievement. ILD attempted creating a non-monetary reward system to try to keep employees engaged and working at the same rate that they did when they received bonuses and raises and the underlying fear of losing their jobs was not hanging over the heads, but it was unsuccessful. Employee productivity and motivation continued to spiral out downwards and the company stopped trying to maintain a balance with the employees. The offices continued to become more segregated and a lack of communication between departments has negatively impacted the company’s relationship with many of its customers. The question is how to balance a productive company and employee retention not only in the good times but the bad times as well? The reality is that the answer will not be the same for any two companies, but through
Kelly Scaduto
Ashford University
Dr. Jonathon Green
Final Paper
04/15/2013
There are many factors affecting a company’s success in delivering a consistent level of performance that meets the needs of their customers and exceeds the quality of their competitors. One of the main contributors to the level of service provided are the employees that represent the company. As many companies have been impacted by the downturned economy they have been forced to restructure wages, eliminate bonus, enact hiring freezes and lay off employees, shifting a much heavier workload on the employees left behind. ILD Telecommunications, a third party billing company, is no exception to this rule and beginning in 2009 enacted all of the measures mentioned. However, as the company began to struggle so did productivity. Employees were forced to remain in the workplace because there wasn’t anywhere else to go. With unemployment rates at an all-time high employees were resigned to stay put, but with the loss of motivation and commitment that once supported the company in its time of highest achievement. ILD attempted creating a non-monetary reward system to try to keep employees engaged and working at the same rate that they did when they received bonuses and raises and the underlying fear of losing their jobs was not hanging over the heads, but it was unsuccessful. Employee productivity and motivation continued to spiral out downwards and the company stopped trying to maintain a balance with the employees. The offices continued to become more segregated and a lack of communication between departments has negatively impacted the company’s relationship with many of its customers. The question is how to balance a productive company and employee retention not only in the good times but the bad times as well? The reality is that the answer will not be the same for any two companies, but through
References: Armstrong, M., Brown, D & Reilly, P. (2010) Evidence-based reward management: creating measurable business impact from your pay and reward practices. London, GBR: Kogan Page Ltd. Brown, R. & Pollitt, D (2008) Human resource management international digest, vol.16, #3: employee engagement. Bradford, GBR: Emerald Group Publishing Ltd. Cooper, D. & Schindler, P (2011) Business research methods. New York, NY: McGraw-Hill Companies, Inc. Dow, S. & McMullen, M. (2010, June 10) The impact of rewards programs on employee engagement. WorldatWork retrieved from http://www.worldatwork.org/waw/adimLink?id=39032