Rewarding and Motivating Employees   In the current economic climate many organisations have had to reduce budgets, cut back on expenditure, freeze salaries and withdraw bonus schemes, so how do you reward and motivate employees when money is tight?

Sympathy can only go so far   What can happen when an employee has two jobs

Redundancy Payments Increase   Redundancy Compensation payments are set to increase again in October 2009

Rewarding and Motivating Employees

The current economic climate has forced many organisations to make cuts in expenditure and for many this has included losing staff.  For those staff remaining there is frequently restructuring of their role and the expectation that they will accept additional responsibilities.  However, it is often the case that employers fail to acknowledge the increased efforts of their employees, either because they are too busy, too stressed or because they are unsure how to reward without increasing pay. 

Recognition for doing a job well has long been identified as the top motivating factor influencing employee performance and whilst money is obviously important to employees,what tends to motivate them to perform at higher levels is the thoughtful, personal kind of recognition that signifies true appreciation for a job well done. (Nelson B)

Ideas such as the following can be used informally to recognise employees and really cost very little:

• A sincere thank you
• A note expressing thanks for a specific tasks
• The introduction of an employee of the month award/trophy
• Sending flowers
• Additional time off - half day, whole day, week's leave
• Gift certificates
• Articles about staff in company newsletters or on notice boards
• Bottle of wine/case of beer
• Letter of recognition
• Personalised gift
• Cakes for the office
• A buffet lunch for the staff
• Theatre tickets
• Peer recognition schemes where employees present awards to each other
• A gift for the family/spouse where the employee has worked long hours on a project

The employer should note that recognition must be carried out in a timely fashion and with a sincere approach in order for it to be effective.  Rewarding behaviour that occured weeks earlier will not have the same motivational effect.

It is generally recommended that rewards are presented to individuals in front of their colleagues as this allows others to note their achievements and the fact that you are recognising them.  However, employers should tailor their approach to the individual concerned as some employees may feel uncomfortable with such public recognition and prefer a quieter approach.

Driving the business forward is more important than ever this year and this can only be achieved with the full support and increased motivation of your team!

If you would like assistance in creating and implementing a staff recognition scheme Picasso HR can provide you with ideas and support appropriate to your organisation's needs.  Contact us on 01473 890037 for further information.

Sympathy can only go so far

Dear Picasso HR

We are a light engineering company. It has recently come to my attention that Carla, one of our long serving assembly staff, has a second job as a barmaid three nights a week. This came to light because I had seen her looking drained and making more mistakes. I have had a word with her and she said she needs the other job to make ends meet as her husband has left her and she has two small children. We don’t want to lose her and are sympathetic but we can’t just ignore this as it is unfair on her colleagues and a potential health & safety issue. What should I do?

Yours sincerely

Ian Dilemma

Dear Mr Dilemma

We appreciate this creates a difficult situation for you. Have another informal meeting with her and try to discover if Carla has exhausted her right to government benefits given her situation. She may well get additional benefits as a single parent. If she does continue with her second job, explain that as it is affecting her performance (giving examples) and that it is a health & safety issue that you cannot ignore. Carla needs to understand that although you are sympathetic, if she cannot show sufficient improvement, she faces disciplinary action and potential dismissal. Give her an opportunity to improve her performance and tiredness immediately and monitor closely especially as there are H & S issues.

If Carla shows little or no improvement then you must write to her inviting her in to a formal disciplinary meeting, telling her why and giving her the right to representation. Ensure you give Carla every opportunity to have her say at the meeting. If it is a serious  H & S matter, you may give Carla a final written warning, however if it’s a minor matter a first written warning would be normal. The warning should be given in a letter explaining how long this will be kept in her personnel record and the consequence of not improving her performance and general tiredness.

There may also be a working time regulation issue here if she works more than 48 hours a week together with her second job. If that’s the case ask her to sign an opt-out.

We hope this has been of help.

The Picasso HR Team

Redundancy Payments Increase

The government has taken the decision to increase the weekly redundancy compensation limit from £350 to £380 from 1st October 2009.  This decision has been taken with a view to providing increased protection for those employees who are made redundant whilst also having consideration for the burden of costs placed on the employer.

Redundancy compensation payments are usually reviewed in February.  However, given that payments will have risen twice this year, there will be no further review in February 2010.

The information in this newsletter is of a general nature and is not a substitute for professional advice. You are recommended to obtain specific professional advice before you take any action.

For further information, advice or assistance on any of the matters raised in this newsletter please contact Picasso HR on 01473 890037.

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