Investigating people at work Lesson 8

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Investigating people at workLesson 8

• Motivation of Employees
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Lesson Objectives

• In this lesson we will look at -
• What motivates employees
• Some of the laws governing welfare at work,
  including working time regulations,
  maternity/paternity rights
• How people are paid
• Non-pay rewards
• Conditions of work
• The culture of the workplace

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Motivating employees

• So far we have seen how organisations find
  employees and train them to do the job how do
  they keep them happy in their jobs?

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Laws That Protect Well-being Of Staff

• We look at employment law in more detail in a
  later lesson but here we mention 3 laws that are
  specific to staff welfare
• Working Time Regulations
• The Employment Act 2002
• Minimum Wage Laws

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Working Time Regulations

• UK must comply with EU which says employees over
  18 must
• Have 4 wks paid holiday a year
• Work no more than 6 days in 7
• Have a 20 min break every 6 hours
• Work no more than 48 hrs a week

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The Employment Act 2002

• This is specific to time off for leave for
  maternity paternity. Employees are entitled
  to-
• Maternity paternity leave for before, during
  and after birth of a child
• Those who adopt can have 6 mths paid leave
  followed by 6 mths unpaid leave

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Minimum Wage Laws

• Introduced to prevent employees being paid less
  than a laid-down minimum.
• Rates depend on age
• Rates raised from time to time to ensure low paid
  unskilled get reasonable wage

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Pay And Other Incentives

• A payment system should
• Help recruit enough quality staff
• Support staff retention
• Keep labour costs low
• Motivate staff
• Allow for other rewards and benefits

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How Pay is Calculated

• The main ways that pay can be calculated are-
• Flat rate
• Time rate
• Piece rate
• Bonus
• Commission
• Output-related pay

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Flat rate

• Set rate of weekly, monthly or annual pay
• Easy to calculate administer
• No scope for incentive except for annual pay
  review

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Time rate

• Employee receives a set rate per hour
• Time worked above normal hours is overtime and is
  usually a multiple of normal rate such as
  time-and-a-half
• Used to state Minimum Wage

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Piece rate

• Payment is made for each item processed or
  produced such as weight of produce picked,
  envelopes addressed, no. of items made on a
  production line

• Disadvantages
• Does not suit where production is making complex
  items
• Can lead to low quality output
• Not suitable for service sector as output
  difficult to assess

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Bonus

• Paid as additional incentive reasons for doing
  it-
• Completion of job on time
• Profit sharing (sometimes given as shares)
• Special times of year such as Christmas, holiday
  time
• Punctuality
• Good sick leave record

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Commission Output Related Pay

• Commission is paid as
• a percentage of the sales a person makes
• The only income the employee receives example
  is life insurance salespeople who are paid a
  percentage of the 1st years premiums

• Output-related pay is
• A combination of time-rates and bonuses,
  typically linked to output or productivity

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Performance Related Pay

• Performance related pay (PRP) - method of linking
  pay to how well someone does job - measured by
  results.
• Government want to put public sector on PRP
  (teachers, police NHS etc)

• Problem is how do you quantify PRP?
• Teachers results, league tables?
• Police no. of arrests, convictions, punishment
  given, clear-up rate?
• NHS size of waiting list, no. of patients
  cured, keeping within budget?

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Activity

• Read the handout headed Motivation in Practice
  Performance Related Pay Teachers that is
  attached to the slide copy handout.
• Write or type an analysis of the handout and go
  on to give your opinion on the use of PRP for
  teachers pay

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Non-financial rewards

• These are also known as fringe benefits or
  perks (short for perquisites). Reasons for them
  include-
• Saves employee tax NI, and employer saves
• Benefits from Economies of Scale e.g. canteen
• Help employee performance and welfare such as
  healthcare, hairdressing, provision of uniform
• Discounts on company goods - more sales
• Commitment to company crèche, pension, car

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Examples of Non-financial rewards (1)
PENSION SCHEMES
CANTEENS
CRÈCHES
HOUSING
EDUCATION
HOLIDAYS
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Examples of Non-financial rewards (2)
DISCOUNTS
HEALTHCARE
PHONES
INSURANCE
TIME OFF
SPORTS
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Conditions of Work

• We will look at the legal aspect of this in a
  later lesson, however job satisfaction and being
  happy at work also require
• A bright, clean and well lit environment
• An acceptable work temperature relative to what
  is being done
• A safe working environment
• Other physical conditions (noise, toilets etc)

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The Culture of Organisations

• The culture of an organisation relates to
  decision making and management styles within it
• These affect ability of managers to empower and
  motivate employees to do well put another way
• Autocratic style fear and unwillingness to
  innovate
• Delegated responsibility feel good culture
  which leads to better motivation, commitment to
  job, leading to good morale, positive attitudes
  and camaraderie

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Lesson Objectives Revisited

• In this lesson we looked at -
• what motivates employees
• Some of the laws governing welfare at work,
  including working time regulations,
  maternity/paternity rights
• How people are paid
• Non-pay rewards
• Conditions of work the culture of the workplace

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Summary

• Many factors affect motivation of people at work
• Pay systems should reflect the effort people put
  in to their job and should be appropriate to the
  type of work
• Non-financial rewards also play a role in
  motivation as to working conditions and the
  culture of the organisation