Research title: Impact of employee welfare and motivation program in an organisation – A case study of Burberry
Research project description:
Employee welfare is non-financial rewards that are offered by many organizations to retain the talented employees. These welfare and rewards are offered by the means of incentives and other financial means. In the view point of Dobre (2013), retention of employees is important because it is an effective way to ensure that the employees remain employed to maintain job performance and productivity. Employee replacement also increases the overall cost and expenditure of the organization (Premarathne and Perera 2017). If effective welfare and motivational approach is carried on in an organization it shall effectively increase the productivity of the organization.
Recently, it has been evident that Burberry suffered the worst sales growth. The reason behind this assumed to be the increased competition in the market. In addition to this, it has also been found that the employee turnover rate has been as well (Burberryplc.com 2016). Lack of welfare and motivation program at the workplace could be one of the reasons behind the increasing rate of turnover. Therefore, focus should be made towards the welfare and motivational programs to retain employees. This way, the productivity of the organization would also increase.
Research aims and objectives
The aim of this study is to evaluate the various feasible means of motivating employees that would eventually reduce the rate of turnover.
The objectives are:
Hypothesis of the research:
H0: Employee welfare and motivation programs help retention of employees that in turn helps in increasing the productivity of the organisation.
H1: Employee welfare and motivation programs do not help in retention of employees that in turn do not help in increasing the productivity of the organisation.
Literature review:
1.3.1 Davies, E., van der Heijden, B.I. and Flynn, M., 2015. The relationship between organisational support, job satisfaction, retirement affect and retirement intentions for older workers in the UK.
As stated by Davies et al. (2015), employee or staff welfare is an all-encompassing term that covers a wide range of facilities necessary for the well being of the employees of the organisation. In the major welfare programs, companies offer a wide range of benefits that include healthcare benefits, housing and even supplement support for the families. Employee welfare programs include the schemes that benefit the employees working in an organisation.
1.3.2 Neha, S. and Himanshu, R., 2015. Impact of performance appraisal on organizational commitment and job satisfaction. International Journal of Management and Engineering Sciences, 6(2).
As pointed out by Neha and Himanshu (2015), that when the rate of employee attrition rate is high, it directly hampers the productivity of the organisation. In contrary to this, when the employees are motivated and taken care of, they feel motivated and becomes more productive in their respective fields.
1.3.3 Nusrat, M. and Solaiman, M., 2016. A Study of Employee Welfare Leading to Corporate Sustainability in Garments Industries of Bangladesh.
In the view point of Nusrat and Solaiman (2016), employee welfare makes the life of the employees worth living. The various services and benefits encourage the employees to work with more determination and generously fringe the employees to work with more determination. Nusrat and Solaiman (2016) added that the motivational factors need not to be related to monetary terms only but the welfare depend on other factors as well.
1.3.4 Mauno, S. and Ruokolainen, M., 2017. Does Organizational Work–Family Support Benefit Temporary and Permanent Employees Equally in a Work–Family Conflict Situation in Relation to Job Satisfaction and Emotional Energy at Work and at Home?. Journal of Family Issues, 38(1), pp.124-148.
Mauno and Ruokolainen (2017) have pointed out that there the management of an organisation might undertake a number of steps to improve the condition working condition of the employees and boost their morale. Some of the important factors that are responsible for the welfare of the employees might include hygienic toilets and washrooms, proper drinking water and also providing adequate time for meal breaks
Research methodology:
For this particular study, mixed research approach shall be undertaken that includes both primary and secondary sources of data. For the secondary data, the resources can be collected from various sources including books and journals available online and offline (Taylor et al. 2014). For the primary research, only quantitative approach shall be undertaken where a survey shall be undertaken among the employees and staffs of the organization to understand their point of view towards the welfare and motivation program.
Structure of the project:
This chapter of the research project shall carry out the literature review on the topic of employee welfare and motivation programs. A number of peer reviewed articles shall be critically analyzed in this part of the paper. Literature review is important in order to gain the view point of different authors and to get an in depth understanding of the research topic.
Literature review
The concept of employee welfare and motivation program:
As stated by Davies et al. (2015), employee or staff welfare is an all-encompassing term that covers a wide range of facilities necessary for the well being of the employees of the organisation. In the major welfare programs, companies offer a wide range of benefits that include healthcare benefits, housing and even supplement support for the families. Employee welfare programs include the schemes that benefit the employees working in an organisation. In the view point of Girma (2016), employee welfare shall be the top priorities of the Company’s human resource policy. Girma (2016) further added that these employee welfare program although is a costly procedure for the companies but it ultimately results in the overall development of the employees. A proper welfare scheme and program actually acts as a morale booster that in turn helps in improving the efficiency of the employees. As commented by Jensen and Jacobsen (2015), when the employees are not appreciated, the outcome might not be as expected and so employee welfare programs are important for an organisation. In simple terms employee welfare is the process of making the lives of employees worth living for workmen and the steps that are undertaken for the comfort and improvement among the employees.
Employee motivation has been defined as the psychological force that determines a person’s behaviour in an organisation. Motivation can also be regarded as the willingness of a person to expand energy in order to achieve a particular goal or reward. Judge et al. (2017) stated that if the management of an organisation wants to encourage and inspire motivation among the employees, undertaking employee welfare program is one of the most effective means.
Factors responsible for employee welfare and motivation:
Mauno and Ruokolainen (2017) have pointed out that there the management of an organisation might undertake a number of steps to improve the condition working condition of the employees and boost their morale. Some of the important factors that are responsible for the welfare of the employees might include hygienic toilets and washrooms, proper drinking water and also providing adequate time for meal breaks (Ravi and Raja 2016). Employee welfare also includes monitoring the working condition and creating workplace harmony by the means of proper health and industrial relations and insurance against any disease, unemployment and accidents for the workers and their families (Tufail et al. 2016). Thus, employee welfare programs are related to all those activities that encourage the employees to do perform better in the organisation in addition to the factors related to the wages and salaries.
According to Herzberg’s motivational and hygiene factor theories, one of the important factors that motivate the employees in an organisation is related to employee welfare. The hygiene factors include supervision, good work condition, better salary and job security as well. As commented by Hülsheger et al. (2013), that when these hygiene factors are met by the management of the organisation, employees find it motivating and they pay more attention to their work that ultimately leads to better productivity of the organisation. When the employees find that they are being cared by the organisation, they also try to work the best as per their ability (Nusrat and Solaiman 2016). When the workplace is harmonious and supports a better infrastructure, employees are motivated largely that directly contributes to the productivity of the organisation.
Importance of employee welfare and motivation in an organisation:
The most important expected outcome as pointed out by Gichuhi et al. (2013), due to employee welfare and motivation program is that the employees become loyal to the organisation. An important point of consideration in this respect is that when employees are motivated the chances of employee retention also increase. As pointed out by Neha and Himanshu (2015), that when the rate of employee attrition rate is high, it directly hampers the productivity of the organisation. In contrary to this, when the employees are motivated and taken care of, they feel motivated and becomes more productive in their respective fields. As pointed out by Iqbal et al. (2013), that in the recent market situation, organisational activities have become competitive. Organisations in the same industry are trying to compete with each other. They are offering all kinds of possible facilities that are needed for the employees to get motivated and improve their welfare. When the employees get the proper attention and the things that motivate them, they are automatically motivated and perform the best as per their ability (Davies et al. 2015).
Saeed and Shah (2016) showed the positive implications of motivating employees. Motivation helps in controlling behaviour of the employees. Motivated employees will retain a high level of innovation and would produce a higher level of efficiency. In addition to this, motivating the employees will ultimately lead to the increase in the productivity of the overall work of organisation.
Various types of employee welfare and motivation programs conducted in an organization:
Taylor et al. (2015) came up with a number of employee motivation programs. Taylor et al. (2015) pointed that the most effective means of motivating employees is by providing them monetary incentives in terms of better pay, incentives or bonuses. In this respect, Vroom’s expectancy model can be discussed. According to this model, employees’ performance depends on how well the person is treated in the organisation (Jensen and Jacobsen 2015). It is when the expectations of employees are met they would be able to perform better. According to Vroom, an employee’s performance depends on individual’s factors like personality, skills and knowledge (Girma 2016). It is when the employee’s needs and demands are taken well care of; the employees are automatically motivated to do their work.
There are internal and external factors that motivate the employees. The internal factors depend on the working environment and the organisational culture as well. As commented by Girma (2016), internal motivation includes thoughts and emotions. The three basic internal factors of motivation are needs, cognition and emotion. The employees expect that their demand and needs should be fulfilled by the organisation because they work for the Company and so their expectation increases (Saeed and Shah 2016). Thus, their performance should be recognised and rewarded accordingly. Apart from the monetary factors, the employees can be motivated by other means as well (Premarathne and Perera 2017). The most effective means is by performance appraisal. Performance appraisal is the method when the work outcome of the employees is evaluated and they are rewarded or awarded accordingly (Basu et al. 2015). Performance appraisal is very important because every employee expects that if they are doing something fruitful for the organisation, they expect something fruitful in return. Thus, it falls on the responsibility of the management to undertake certain approaches that would eventually motivate the employees to perform better and increase the overall productivity of the organisation.
Relationship between employee welfare and motivation program with productivity of organization:
In the view point of Nusrat and Solaiman (2016), employee welfare makes the life of the employees worth living. The various services and benefits encourage the employees to work with more determination and generously fringe the employees to work with more determination. Nusrat and Solaiman (2016) added that the motivational factors need not to be related to monetary terms only but the welfare depend on other factors as well. The very logical step of increasing the standard of living of the employees is to conduct the employee welfare program and providing the basic facilities that would improve their working condition (Saeed and Shah 2016). Some of the basic steps that an organisation might undertake to increase the morale of the employees are by giving philanthropic and paternalistic feelings to the employees (Edmans et al. 2014). The aim of employee welfare is to provide better physical and mental health care facilities that they would be motivated and would keep them away from any kind of evil de-motivating things.
There is a direct relationship between employee motivation and the increase in the productivity of the organisation. In the view point of Ravi and Raja (2016), that there are many cases when the employees are given good amount of money for their work but they are not motivated the way that they should be. Keeping the similar approach into consideration, it is only when the employees are motivated, they find that they are being cared in the organisation and they have certain value at the workplace (Judge et al. 2017). This way, they would work more efficiently and would like to give the best as per their ability that will eventually increase the overall productivity of the organisation.
Methodology, methods and techniques:
This part of the research states the method of the research that has been used for the research project. The methodology states the research method approach, research philosophy and research approach that has been undertaken for the research (Billig and Waterman 2014). The methodology shall also state the advantages and the disadvantages of the particular research method used for the research.
Research philosophy:
Research philosophy is the set of beliefs that talks about the nature of the study used at the time of studying the theories and models related to the topic of discussion. For this particular research project, positivism research philosophy has been selected because by this way, the theories could be analysed in a more critical manner (Mackey and Gass 2015). On the other hand, realism and interpretivism has not been selected for the study because is it completely based on the perception of the human and it might vary from one person to another.
Research approach:
The research approach that has been undertaken for this research is deductive approach. This approach has been undertaken because by this approach, the existing theories and models could be used for the purpose of evaluating the research question taken under consideration (Silverman 2016). On the other hand, inductive research approach has been neglected because this approach would lead to developing new theories and models. This approach would not be possible to provide necessary support for the research.
Research design:
The preferable research design used for this particular research project is the analytical or the descriptive design. This design has been used to get detailed information and in depth knowledge on the various theories and information used for the research (Smith 2015). This way the view points of various authors have been critically analysed and a better conclusion has been reached. At the same time, other approaches like explanatory and the exploratory research designs have been neglected because that would not provide a detailed approach to the topic (Mackey and Gass 2015).
Research strategy:
The research strategy that has been used for the purpose of this particular research project is by the means of survey and interview technique. Research strategy is the process that helps to understand the point of view of the people involved in the research project (Tarone et al. 2013). It has to be understood that the particular research is based on the perception of the employees of the organisation. This is important to know the view and thinking of the employees on how they are treated in the organisation. For the same reason, survey method has been undertaken for the research.
Sampling technique:
For this particular research, both probability and non-probability sampling technique has been taken into consideration. Random sampling technique has been used for the survey where the employees working for Burberry have been selected as the respondents (Billig and Waterman 2014). The survey had been conducted among 40 employees and the response from 30 employees has been taken into consideration. The advantage of undertaking the survey technique was that the inside story of how the employees are treated in the organisation has been known.
Data collection method:
For this particular research, both primary and secondary data have been used for the data collection process. The primary data collected for the research is by the means of survey and interview (Mackey and Gass 2015). The data collected from the primary sources helped to understand the actual reason related to the employee welfare in the organisation Burberry. On the other hand secondary sources have been gained from the various sources like books and journals that are available in printed form and in online forum as well.
Ethical consideration:
It is very important to carry out the complete research in an ethical manner. Complete research was conducted by following the research ethics. For instance, information collected from the secondary sources was all referenced properly to avoid any act of plagiarism. The idea of the authors was paraphrased in own words and was not copy pasted directly (Billig and Waterman 2014). In terms of the primary sources, the survey questionnaire was prepared with all the ethical consideration. There was no logo or symbols of any company that would act as a promotional content. The survey paper served only for academic purpose. None of the respondents were forced to participate in the survey (Mackey and Gass 2015). Each and every employee participated with their will in the research survey.
Primary data collection:
The primary research for the study shall be based on quantitative analysis. For the same reason, a survey has been conducted among 30 employees of the Burberry Store. Analysis of the survey can be conducted here:
|
Options |
Response% |
No. of response |
Total respondents |
|
Male |
60 |
18 |
30 |
|
Female |
40 |
12 |
30 |
Table 2.1: Gender of the respondents
Analysis:
Among the response of the 30 employees that have been taken into consideration, 18 of them are male and 12 of them are female. Thus, it can be expected that the overall response gained from the employees would be the perspective of both the male and female employees.
|
Options |
Response% |
No .of response |
Total respondents |
|
20-30 years |
40 |
12 |
30 |
|
30-40 years |
40 |
12 |
30 |
|
Above 40 |
20 |
6 |
30 |
Table 2.2: Age group of the respondents
Analysis:
It has been found that 40% of the employees are between 20 and 30 years of age while another 40% is between 30 and 40 years of age and the rest 20% are above 40 years ld. From this, it can be said that the response gained from would be more focused towards the employees between 20 and 40 years. In this respect, it can be said that this particular age group are the major workforce of an organization and thus, the welfare of these employees is indeed important in order to keep a good working environment at a particular workplace.
|
Options |
Response% |
No .of response |
Total respondents |
|
Yes |
33 |
10 |
30 |
|
No |
67 |
20 |
30 |
Table 2.3: Response on employee welfare and motivational program
Analysis:
This question was asked to know about the participation of the management towards employee welfare and motivational program. It has been found that 33% of the respondents said that the organization performs employee welfare and motivational program while the rest 67% completely denied on the fact. From this it can be assumed that the employees at the higher position might get certain benefits in terms of welfare and motivation but majority of them do not comply with the fact that the company serves welfare program. Thus, it can be easily said that the organization needs to focus on the welfare and motivational programs in order to offer a better work life to the employees. As it has been evident from the literature review that if the employees are taken well care off, the employees would also work for the organization that can directly impact the productivity of the organization (Gichuhi et al. 2013).
|
Options |
Response% |
No .of response |
Total respondents |
|
Highly believe |
33 |
10 |
30 |
|
Moderately believe |
16 |
5 |
30 |
|
Neutral |
6 |
2 |
30 |
|
Believe |
30 |
9 |
30 |
|
Do not believe |
13 |
4 |
30 |
Table 2.4: Response on employee welfare program reduces attrition
Analysis:
This question was asked in order to understand the perspective of the employees towards employee welfare and motivational program. It has been found that 33% of the respondents highly believed that if proper employee welfare and motivational program is conducted in the organization, it will reduce the rate of attrition because employees would be encouraged to work for the organization. 30% said that they believe in the same approach. 16% showed their moderate response, 6% were neutral to their response while 13% showed their negative response and said that they do not believe that there is a link between motivational program and attrition. From this analysis it can be said that majority of the respondents believe in the fact that if they are treated rightly, the attrition rate would eventually lower down. As evident from the theories that when there is lower attrition rate, the organization do not have to spend on the hiring cost and training and development programs and eventually the productivity of the organization increases (Iqbal et al. 2013).
|
Options |
Response% |
No .of response |
Total respondents |
|
Highly satisfied |
13 |
4 |
30 |
|
Moderately satisfied |
16 |
5 |
30 |
|
Neutral |
6 |
2 |
30 |
|
Satisfied |
23 |
7 |
30 |
|
Not satisfied |
43 |
13 |
30 |
Table 2.5: Level of satisfaction of the employees
Analysis:
This question was asked to understand the level of satisfaction among the employees working for the organization. It was found that majority of the respondents were not satisfied with the management approach; it is 43% of the total respondents. 23% of the tem were satisfied, 6% were neutral to their response while 16% were moderately satisfied and 13% were only highly satisfied with the management’s approach towards employee motivation and welfare program. From this response, it can e easily said that there is great need of introducing employee welfare and motivational programs at the organization in order to motivate the employees and make them work towards the organization more actively (Taylor et al. 2015).
|
Options |
Response% |
No .of response |
Total respondents |
|
Strongly believe |
40 |
12 |
30 |
|
Moderately believe |
16 |
5 |
30 |
|
Neutral |
10 |
3 |
30 |
|
I believe |
10 |
3 |
30 |
|
Do not believe |
24 |
7 |
30 |
Table 2.6: Response on introducing employee welfare and motivational program
Analysis:
This query was made in order to understand the perspective of the employees towards welfare and motivational programs. It has been found that 40% of the respondents strongly believe that an organization should consider a number of employee motivational and welfare programs. 16% showed moderate response, 10% were neutral to their response, 10% said that they believe in this approach and 24% said that they do not believe that their organization shall undertake any employee welfare and motivational program. From this perspective, it can be easily said that the employees have expectation from the organization that the management would consider their benefit as well and would introduce certain motivational programs. In fact, similar approach was observed from the view point of Dobre (2013), that when the expectations of the employees are met, there remains the option that the employees work with more dedication. This will eventually help to increase the productivity of the organization.
|
Options |
Response% |
No .of response |
Total respondents |
|
Incentives |
40 |
12 |
30 |
|
Performance appraisal |
26 |
8 |
30 |
|
Reward and recognition |
26 |
8 |
30 |
|
Training programs |
6 |
2 |
30 |
Table 2.7: Suitable Employee welfare program
Analysis:
This question was asked to get an idea of the most liking welfare and motivational program by the employees. The options were very common that an organization can easily undertake. From the response, it has been found that 40% of the employees said they want more incentives, 26% said that performance appraisal is important to keep them motivated, 26% said that they want reward and recognition and 6% said that they would like better training options. For this analysis it is clear that the management needs to make positive approach towards designing better incentives and performance appraisal programs to motivate them. In fact, as stated by Neha and Himanshu (2015), that if the employees are given certain welfare options, they would definitely improve their performance in the organization.
|
Options |
Response% |
No .of response |
Total respondents |
|
1 star |
40 |
12 |
30 |
|
2 star |
26 |
8 |
30 |
|
3 star |
26 |
8 |
30 |
|
4 star |
6 |
2 |
30 |
Table 2.8: Rating of the employee welfare and motivation program
Analysis:
This question was asked to get an overall approach of the welfare and motivational program that is being carried on in the organization. It has been found that 40% gave 1 star rating, 26% gave 2 stars, another 26% also opted for 3 stars and just 6% gave 4 stars which was the highest rating in the scale. From this analysis, it is clear that the employees are not all happy with the management’s approach and there needs to be certain changes in the overall welfare and motivational activities in order to impress the employees and keep them motivated.
Conclusion:
A detailed analysis on the important of employee welfare and motivational program in an organisation has been carried on in the study. It has been found that when the employees are treated in the right way and they are taken well care off, the employees are also found to work with greater prosperity. Therefore, it shall be the prime responsibility of the organisation to take care of the employees’ need and welfare In addition to this, it also been understood that in the recent competitive market environment there is huge opportunities for the employees to shift from one organisation to the other. However, it is the loss of the organisation when the attrition rate increases. When new employees needed to employed, it automatically increases the cost of the organisation. It also requires training the employees. All these perspectives clearly states that if an organisation carries on better employee welfare and motivational program, it would retain the employees and as a result, the productivity of the organisation would increase.
5.2.1 To evaluate various theories related to employee welfare and motivation by the means of secondary research
The objective has been met and various theories of employee motivation and welfare programs have been evaluated in the study. Herzberg’s motivational and hygiene factor theories, McGregor’s Theory X and Theory Y and several other employee motivation theories have been evaluated in the study. With the help of these theories, it has been clear that when the employees are motivated, there remain better chances that they would perform better than their ability. Thus, it is important to consider certain employee welfare and motivational programs in an organization.
5.2.2 To understand the impact of employees’ welfare and motivation program in an organisation
The impact of the employees’ welfare and motivational program has also been understood from the various theories taken under consideration. In addition to this, the response gathered from the survey also showed positive inclination towards employee welfare and motivational program. It has been understood that when the employees are given the rights and opportunities, their performance automatically improve. In fact, from the survey it has also been clear that if the employees get proper treatment they would also perform the best as per their ability.
5.2.3 To understand the range of choices of employees’ welfare and motivational programs
This particular objective has been achieved by the means of secondary and primary research. According to major research scholars and theorists it has been found that the major factors that add to the benefits of the employees’ motivation and welfare is based on the monetary factor. Thus, any kind of monetary benefits like the incentives and bonuses would increase the employee satisfaction and they would perform better in the organization. Other welfare programs also include giving the employees better opportunities to participate in the major organizational activities. This way they would feel wanted and would perform better in the organization.
5.2.4 To recommend certain welfare and motivation program for Burberry
The recommendations for better employee welfare and motivational program can be given as under:
A number of employee welfare and motivational factors can be recommended here:
There is huge scope for further research on this particular research topic. It is a common scenario that employees often leave their workplace due to lack of motivational and better welfare programs. It is for the same reason many organisations introduce a number of motivational programs to motivate the employees. Thus, further research can be easily carried on, on the basis of creating better workplace for the employees or to find out various reasons responsible for retaining employees in an organisation. Thus, any kind of research that is based on these approaches can be carried on, on the basis of this research study.
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