Rewards and Motivation U. S. companies face greater pressures today than ever before to improve cost efficiency and in the same breathe taking their products to market faster, cheaper and with stronger innovation, regulatory compliance, responding to ever increasing regulations around the world that often conflict with each other. A company must also be nimble enough to change direction quickly and cost-effectively when market conditions shift. At the same time, they still must provide an environment in which people want to be employed and want to excel. This is where old models for rewards management fall flat and new rewards approaches must be implemented to make a more efficient and productive organization.
(Chang) The company that will be referred to throughout this paper is the author’s current employer, Walgreens Corporation. In today’s business environment, attracting, retaining and motivating the kind of people who can sustain a fast-growing organization requires most companies to think differently about how they pay their employees and this is true for Walgreens. The thought process to reflect this change is concerns the shift from compensation to rewards or the merger of both. When speaking to an HR representative within the department, it was made clear that the company objectives are results-focused and the weight of reward programs have increased to compensate.
Walgreens views base pay as the price pay for membership to the company. Base pay ensures the company that the employee will show up at work, that they may call employee’s night or weekends with business questions, that they can send them employees out of town and disrupt their personal life. But incentive pay or rewards is the price you pay to get employees focused on what is important to the company. For example, several years ago on the store operations level a flat rate was provided for the positions of Executive managers and store owners across the board in the relation to annual bonuses allocated. For examples, two hundred dollars and seven hundred dollars respectively were issued on a monthly basis for these positions.
The Essay on Rewarding Excellent Employees
REWARDING EXCELLENT EMPLOYEES Modern business world is highly competitive in every aspect. Today even employers have to find new original ways to reward outstanding employees, because only decent incentives will keep the level of their performance high and attract new talented people to work. And if you think that salaries and extra payments are original and highly motivating, you are, ...
However, rather than help productivity it had little effect and essentially did nothing to improve the bottom line for the corporation because managers felt that this allocated amount was just another structured payment (like base pay) and put the equivalent amount of effort into performance as before the implementation of this compensation. However, the company realized that the bonuses that were based on a regional performance data with lateral compensation, which was not beneficial for the company, and therefore realigned, the company’s objectives with the reward system in place. Key performance indicators (KPI’s) were developed so that on the store level the managers would be able to observe statistics and analytical data pertaining to the store such as P & L statements, Historical inventory data, Rx, Lost prevention and countless other parameters. With this data managers were able to discover gaps in statements and therefore implement action plan to improve them. Based on graded KPI’s, sales improvement, gross profit improvement, inventory and expense control; the company was able to arrive to a quantitative formula that bonuses would be based upon that were better aligned with the companies business objectives. With this approach the current reward system better motivates managers better manage employees and essentially perform because their bonuses better reflected their effort sewn.
The Term Paper on Employee Recognition and Reward Program
Abstract I believe that a robust employee recognition program can/will increase employee satisfaction and increase the organization’s customer service rating. In the past, employees were recognized according to their section leadership. Some were recognized and others were not. Since the implementation of the group wide recognition program, I believe the employees are happier. I will verify this ...
I believe that it is a good program because it truly highlights the a manager’s knowledge of the systems and programs used to create a improvement within an establishment and one is rewarded for their knowledge and management; this also allows for performers to shine and be more easily recognized when time for promotions, so great deal of pride is instilled into the management whose long hours don’t go in vain. Walgreens Rewards and compensation system does not discontinue there but rather stems out to many various components that solidify an excellent total compensation package for its employees. Walgreens has a system that they believe will appropriately reward their employees for loyalty and productivity. It begins with monetary pay, also known as base pay were it is competitively structured and adjusted in comparison to the industry and its direct / indirect competitors.
A form of gain-share is used where additional money is disbursed for ideas that are cost effective or that help increase sales. This is accomplished through employees suggestion, where ideas whether they are cost reductive or generate sales are reviewed and if worthy, money is issued in the amount ranging from one hundred dollars to ten thousand dollars. Show and sell is a program where idea for merchandising is rewarded and then used in the corporate published marketing guide that is dispersed monthly to give ideas for sales company wide. Long-term compensation is offered to employees despite position in the form of profit sharing where an employee can set up an account to save for retirement by depositing a potion of their salary. Currently Walgreens matches every dollar invested into profit sharing by $3.
35. Amazing! Along the same wave length of long-term compensation stock purchase plans are available where employees with one year of service and 1000 hours worked can purchase stock at a 10% discount with no brokerage fees. The Walgreens Corporation has prided itself on its longevity and security. In fact, when CVS bought out Eckerd’s, the company made great effort to proved this point with in-store marketing devices stating, “Is your pharmacy changing — – we have been around for 104 years and still going!” The company erects a new Walgreens establishment every 17 hours and has a goal of 500 new stores a year, which creates a great opportunity for growth for all individuals looking for advancement. The workload is challenging for management however there is a sense of redundancy for low-level employees unless they show a sense of urgency to be cross-trained. Performance feedback’s are preformed for certain positions of heighten responsibility for employees and also management.
The Essay on Stock Options Employees Tax Company
Since the late 1980's more and more people have been given the opportunity to purchase stock options. As of 2001, ten million employees have chosen to purchase stock options. Another survey established that 97 of the top 100 e-commerce companies gave the choice of options this year. For these reasons, it is important to understand what stock options are, the different types of options, and their ...
The reviews are in a web based format and employees and management submit a self review regarding their performance and their respective supervisors submit they own review and then a meeting is schedule to compare reviews and constructive criticisms are then issue to help improve performance. These review are scored and data is submitted for several purposes such as deciding factors in promotions. This system seems to be working efficiently with very few snags. Within this benefit system employees also receive discounts based upon affiliation with employment of a Fortune 500 company. Companies such as Dell, Nextel, HP, several hotels, Sprint, Ford, GM and Chrysler are a few companies that are affiliated corporately with the Walgreens Corporation. In conclusion, Process Theory powers Walgreens compensation and rewards system.
Process theories of motivation look at what people are thinking about when they decide whether or not to put effort into a particular activity. Behavior is influenced by the subjective expectations of the connections between goal and effort that are the basis of rational choices. (Meyer, John P. , Becker, Thomas E.
, Vandenberghe) For example, Walgreens along with its competitors are in dire straits to attract and retain register pharmacists because there is a national shortage and the industry is fishing in the same shallow pool. The company needs to extend its recruiting reach and they decided to accomplish this through their employees. The goal is to attract register pharmacists to join the company across the board but especially in cities in which new districts are being built up, such as North Carolina, South California and Atlanta, Georgia. Human Resources created a rewards program to create the motivation to make the connection between the goal and the effort it takes to obtain that goal. For each referral that leads to a new hire an employee receives one thousand dollars and if they recruit for newly developed cities they obtain double points, which would double the payout (i. e.
The Essay on 401 K Plans Company Stock Employees
401 (k) Plans There are many economic issues facing the nation today. While some are extremely important in determining how the economy is balanced, others are not. Although this is true, that does not necessarily make these lesser important issues obsolete. Take, for example, the recent issue of corporate leaders matching contributors to the 401 (k) plan with company stock, instead of with cash. ...
$1, 000 to $2, 000).
This approach has helped alleviate the recruiting strain that was place on the company. The general process theory is consistent with the Walgreens Corporation that has esteemed itself at leading the curve in regards to innovation and human capital. References Meyer, John P. , Becker, Thomas E. , Vandenberghe, Christian.
Employee Commitment and Motivation: A Conceptual Analysis and Integrative Model. Journal of Applied Psychology; Dec 2004, Vol. 89 Issue 6, p 991, 17 p Chang, Julia. Where Everyone’s a Winner. Sales & Marketing Management; Jan 2005, Vol. 157 Issue 1, p 43, 4 p, 8 cMilkovich-Newman.
Compensation: Pay Model. McGraw-Hill. Boston, 2004.
