Class: Employee Benefits and Compensation Case Study

Read the case study below and answer the following question

The Effects of Reward Systems and the Working Environment on Employee Morale and Motivation During the COVID-19 Pandemic

Introduction The COVID-19 pandemic has presented unique challenges to all of us Lockdowns, flight cancellations, job loss, and mental health issues to name just a few. While these consequences of the pandemic are incredibly important and life changing, the pandemic has also reshaped the workforce, employee behaviour, and company policies. There is no doubt that the news is continuously reporting on how such a pandemic has affected businesses as less and less people are willing to work, and many are now quitting their jobs or favouring working from home completely. This begs the question: are employers doing enough to retain their employees? Benefits and reward systems are integral to the attraction of a job, the wellbeing of employees, and retention in general Who would want to work for a company with no benefits? Whether it be health insurance, quarterly or holiday bonuses, performance -based recognition, or paid time off, benefits keep employees happy and motivated in the work their doing. With the added pressure of a global pandemic wreaking havoc among the lives of workers around the world, more incentive is now required to keep motivation high and performance steady.

The purpose of this report is to examine the effects of COVID-19 on the motivation and morale of employees within an organization. An in-depth look of the effects of benefits and reward systems on such factors will be presented, as well as a look into which reward systems would benefit employees most during the pandemic. Finally, a look into the mental health consequences of the pandemic, and how the workplace can be restructured and tweaked in such a way to improve the wellbeing of employees will be examined. Utilization of such recommendations will improve the retention of employees, empower businesses to do more for their employees, and assist in recovering the economy.

Findings COVID-19s Effect on Employee Morale and Motivation Employees are the driving force behind the success of an organization, so there should be no question as to if employers should provide nothing but the best resources and benefits to their employees. This should not only be a token of gratitude for all of their hard work, but also a driving force in keeping an employees head held high, as the world seemingly crumbles around them. Employers should continually alter their benefits and reward systems to cater to the needs of all employees, as it is certainly not a one-size-fits-all situation. The pandemic presents unique needs and challenges to each employee, and one employees struggles will never be the exact same as anothers. For example, one employee may have children who are out of school and is in desperate need of a day-care center for their children, while another employee could be struggling to pay for food for their family.

How is this done? An employer needs to have open communication with their employees. This can be done by holding meetings or surveying all employees on their satisfaction with the current reward systems offered to them. Not only does this create conversation on which employees are struggling from the pandemic, it is also a catalyst for change in these systems. In a 2020 study conducted by Pratima Singh, 240 IT industry employees were surveyed on whether or not they were satisfied with the current reward systems offered by their company, to which only 59% agreed. 26% of employees were dissatisfied completely. The survey also asked if COVID-19 was affecting the performance of an employees job, to which over half of participants strongly agreed or agreed (Singh, P., 2020). While these results are industry specific, they show that COVID-19 does have a strong impact on employee performance and motivation. Furthermore, the 41% of employees that are unsatisfied with this companys reward systems show that change needs to be made. Perhaps in doing so, this performance and motivation can be boosted.

Effects of Benefits and Rewards on Employee Happiness Effectiveness of the benefits offered to employees throughout the pandemic should be continuously monitored and measured to see if they are succeeding at satisfying the needs of employees. In other words, hold a conversation with employees on what benefits they prefer after all, who wouldnt be happy with a customized reward? Employers should also be sure to reward employees in a timely manner. This can be seen in a Blackhawk News Network survey, where more than half of their respondents said that the impact of their reward would be lessened if not received in a timely manner (Romsey, J., 2021) the reason for this being the fact that feelings of accomplishment can fade over time. By following these benefit and reward recommendations, employers can have a positive effect on the happiness of their employees. While in the previous section, the effects of COVID-19 on employee motivation and morale were examined, the specific effects of benefits in general were not. As stated previously, for there to be certainty that such revised initiatives within a company will be effective, employees should be asked whether or not they are satisfied on a perpetual basis. A study of casino workers in Africa addressed this concern specifically through the surveying and interviewing of 1,502 employees. Specific question asked included: Do company benefits contribute to positive feelings about the company and happiness experienced? What company benefits contribute to positive feelings about the company as well as happiness at the workplace? Do good feelings about the company have an impact on happiness experienced at work? The results of the study show that there is a strong positive correlation between positive feelings about the company and the benefits the company offers (Naud, R., Kruger, S., Saayman, M., Jonker, C., & Uysal, M., 2016). What this shows is that benefits do indeed have an effect on the happiness of employees in an organization. Additionally, when an employer incurs the cost of necessities for their employees, the employees are able to spend their money elsewhere on things that make them happy.

Revised Rewards Systems & Benefits for Employees Now that the need for revised employee benefits and rewards due to the pandemic have been addressed, it is paramount that changes and new systems for such be discussed, and recommendations be provided. Overworked employees with pandemic fatigue and little time to recuperate often feel like they are not being appreciated enough for all of the hard work they are doing. This is especially evident in the healthcare industry. Benefits like pay raises and bonuses can help employers express appreciation for their employees, and help employees feel more valued to the company. One suc h company, healthcare giant UPMC, has implemented these changes by raising their starting wage to $15.75 an hour, and offering $500 bonuses to 90,000 employees. While this type of reward can be costly to a company, the happiness and motivation that it shows to an employee will likely show in the work that is done, and the motivation levels seen on the job (Mamula, K. B., 2021).

Employers should show continuous recognition for their employees this can be formally or informally. This recognition, however, should be based on performance and rewards should also be tied to it. When employees expect good things to come of their performance, they will be more motivated to excel. When the employee does excel and receive an award, they will feel a sense of happiness and accomplishment (Groysberg, B., & Abrahams, R., 2020). The last recommendation is to provide benefits that focus around COVID-specific issues that employees may face. This could include enhanced healthcare coverage incurred by the employer, on-site daycare services for children who are unable to attend school due to closures, and longer lunches or break times. Each of these recommendations help to ease the burden of a stressed and anxious workforce by providing necessary service s and rest time to employees. A less stressed employee is a more productive and happier employee.

How About Mental Health? - Changes to the Working Environment

Once benefits and rewards are taken care of for employees, there is still an impo rtant link missing that being the restructuring of the working environment. COVID-19 has changed the working environment substantially with more employees working from home than ever, a need for more time off, mental health issues presenting themselves wi thin the workplace, and a need for a more transparent corporate culture. The COVID-19 pandemic has been a traumatic year and a half for countless employees, and it is very important that employers recognize this and act accordingly. This can be done by creating a psychologically safe working environment in which employees are encouraged to speak up about their struggles with confidentiality to their superior (Groysberg, B., & Abrahams, R., 2020). According to a meQuilibrium report, the number of workers who believe their employer is adequately addressing their mental health needs in the workplace has declined by 10% to 71% between December 2020 and July 2021 (Liu, J., 2021). It is clear that not enough is being done. Being in a safe environment with open communication and an abundance of resources is crucial to happiness. Another important recommendation is the rotation of staff in the working environment. Employees that have more flexible working hours will be able to take care of personal necessities that may arise due to the pandemic and will not be worried about it affecting their job performance (KPMG in Nigeria, n.d.). Offering employees shorter shifts if needed and allowing for additional time off without fear of repercussion can significantly improve productivity and morale during working hours.

Action plans are necessary for responses to traumatic events in the workplace and should be physically drafted for managers to follow (Yahoo!, 2021). By having employers recognize the variety of ways trauma and PTSD work, resources can be better allocated to employees to navigate difficult times. Additionally, by preparing for potential hardships that employees may encounter on the job, it can pre-empt issues that may arise and possibly make employees a bit happier in the long term.

Conclusion COVID-19 has surely presented a unique challenge to both employees and employers. These challenges will forever alter the way employees work, and the way managers interact with their employe es, and it is important that the workplace evolves with it. The benefits and rewards offered to employees need to be adjusted to accommodate new needs associated with the pandemic. By offering incentives, recognition, and COVID-specific resources, motivation and happiness can be restored to employees. The offering of mental health resources and a judgement-free space for conversation can improve the psychological safety of the working environment and flexible working hours can help allow for necessary time off due to pandemic related circumstances. By implementing these recommendations and recognizing a need for change in your organization, your employees will grow stronger and more resilient knowing their employer cares about them and their needs. A rekindling of a desire to make a difference in their work and motivation to excel will be recovered, and a healthy balance will restore to your organization.

QUESTION 1 (20 Marks)

Maslows highest level speaks to intrinsic rewards, which cannot be attained simply through monetary incentives. However, many organisations primarily focus on monetary incentives as a means to reward their employees. Describe the ways in which the levels of Maslows hierarchy of needs would apply to monetary rewards.