Examples of employee motivation in real business world

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 Coco-Cola

The Coca-Cola Company is the world's largest beverage company, with over 500 brands available to consumers in over 200 countries. More than 700,000 people work for the company around the world. Its compensation system includes a yearly merit evaluation, competitive salaries and wages, and employee equity plans at quantified grade levels. The company uses a "red tag" scheme for its employees that recognizes excellent job execution with redeemable points for merchandise or travel awards. The company offers education benefits that incorporate tuition reimbursement to its employees as well as a renewable student scholarship fund. (The Coca-Cola Company, 2020)

Source: The Coca-Cola Company, 2020

·       Performance-based evaluation

The company makes a great effort to hire the best personnel available. Coca-Cola's human resources department not only provides training to employees, but also assesses their performance before and after the training. Pre-training performance technique and post-training performance technique are two ways of evaluation used by the HR department to make sure the employee is well trained (The Coca-Cola Company, 2020).

·       Compensations

o   Consistency

At Coco-Cola, employees are compensated based on the organization's work execution requirements. The company ensures that employee performance is maintained throughout time. The rewarded workers must maintain or improve their performance. This idea has shown to be beneficial in achieving the company's aims and goals for many years (The Coca-Cola Company, 202).

o   Contribution

Workers that contribute significantly and devote themselves fully to the organization are offered generous compensation packages. These compensation packages are not available to anyone who works solely for a salary (The Coca-Cola Company, 2020).

o   Competitiveness

New employees with the mindset of reaching the competitive levels and those with the capability to adapt to and accept changes in the industry and thus positively affect the company’s abilities are usually motivated by a high compensation packet.

o   Administration

Employees who exhibit obedience and obey the organization's standards, processes, and regulations receive significant benefits.

Direct Compensation

Indirect Compensation

Merit pay: This is paid to workers who perform special tasks. The company offers direct financial incentives to the employees who perform these tasks to motivate both the concerned employees and also other employees.

They include leisure facilities, as well as transportation to and from the office. 

If a Coca-Cola employee is unable to work due to family reasons, the company frequently aids the person in resolving those issues whenever possible. When the issue is about money, the corporation helps directly.

Life insurance, medical insurance, and social security are examples of protection schemes that Coca-Cola provides to its employees. 

Profit-sharing: When employee performance results in large profits for the company, the workers are given a portion of the profits. This technique also aids the company in gaining a competitive advantage in the market.

Family vacations paid holidays, and sick leave are also provided for employees.

Table 01: The Coca-Cola Company (2020).

·        Energizing Environment

Coca-Cola also attempts to provide an energizing work atmosphere that motivates employees on a daily basis. Employees can use the restaurant, dry washing, credit union, store, free parking,  free drinks, and fruit, as well as summer hours and an on-site gym.

Southwest Airlines 

"The biggest thing that makes us "us" is our People, and the unique and unrivaled Hospitality they deliver. No one has a Heart for service like the People of Southwest Airlines. No one." (Jordan, 2016) South West Airlines has maintained a low employee turnover rate and good employee productivity (Hallowell, 1996).

Source: Southwest Airlines (2018)

Yang and Peterson (2004) say that in order to compete in a competitive environment, airlines must propose new techniques to build a loyal customer base in order to improve market share and profitability (). Southwest Airlines produces value for its employees by focusing on the "LUV" and "FUN" cornerstones of its employee relations approach.

·       Health -Southwest Airlines provides medical coverage, dental coverage, vision coverage, health savings accounts (HSA), long-term disability, vision coverage, flexible spending accounts, short-term disability, basic life insurance, accidental death and dismemberment (AD & D) insurance, and other available benefits to their employees and their loved ones. They make sure the employees are physically and mentally fit to provide superior service to their customers (Southwest Airlines, 2018).

·    Financial rewards-401(k) Plan, the retirement plan which makes sure their employees are happy and settled at retirement. also, through the stock purchase plan. Employees can purchase Southwest common stock at a 10% discount through payroll deductions after six months of continuous service. Also, employees share in the success of Southwest with our Profit-Sharing Plan, which rewards them for their contributions to Southwest’s profitability. Southwest was the first in the airline industry to offer a profit-sharing plan (Southwest Airlines, 2018).

  • Wellbeing - Southwest Airlines always makes sure to help their employees' and their families' physical, mental, and financial health and well-being. Employees get to enjoy time off for personal reasons, vacations, or to care for themselves or a loved one. Employees and their families get free access to counseling and work-life balance tools (Southwest Airlines, 2018).
  • Travel privileges - Southwest Airlines employees and their qualified dependents get free unrestricted travel privileges. Employees can also choose their journey through other airlines where the company will arrange discounts with rental free cars, hotels, theme parks, and more (Southwest Airlines, 2018)
  • Training & development – Southwest employees are provided with the necessary knowledge and training they need to perform their jobs with safety, reliability, hospitality, and low cost in mind. In addition, the organization pledges to create a stable work environment with equal opportunities for learning and personal development. Leaders are empowered to lead at their fullest potential by providing simple and modern development opportunities (Southwest Airlines, 2018)


Reference

Hallowell, R. (1996). Southwest Airlines: A Case Study Linking Employee Needs Satisfaction and Organizational Capabilities to Competitive Advantage. Human Resource Management, 35(4), 513-534

Southwest Airlines (2016). About Southwest - Southwest Airlines. [online] Southwest.com. Available at: https://www.southwest.com/html/about-southwest/index.html?clk=GFOOTER-ABOUT-ABOUT. [ Accessed on 06 May 2022].

Southwest Airlines (2018). Benefits | Southwest. [online] Southwestair.com. Available at: https://careers.southwestair.com/benefits. [ Accessed on 06 May 2022].

The Coca-Cola Company (2020). Why Work at The Coca-Cola Company - Careers. [online] Coca-colacompany.com. Available at: https://www.coca-colacompany.com/careers/why-work-at-the-coca-cola-company. [ Accessed on 06 May 2022].

Yang, Z. & Peterson, R.T., (2004). Customer Perceived Value, Satisfaction, and Loyalty: The Role of Switching Costs. Psychology & Marketing, 21(10).799-822



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Comments

  1. Pavani Damsara SamarasingheMay 7, 2022 at 4:54 AM

    Hi Shalini, I agree with your post. When change and restructuring are unavoidable in an organization, employee loyalty and motivation become one of the key difficulties that most businesses face today. Aside from the continuing effort on attracting new talent, ensuring that existing employees remain focused, engaged, and so retained is another difficulty. Because good companies recognize that loyal employees lead to better business results, many are focusing more on measuring employee loyalty and motivating them to keep their employees happy. The goal of this research is to determine the elements that influence employee motivation and thus employee loyalty to their company. Omar, M.W., Jusoff, K. and Hussin, H., (2010).

    ReplyDelete
  2. Shalini MartinMay 7, 2022 at 5:49 AM

    Hi,
    Yes Pavani, losing an employee is EXTREMELY costly. Most businesses underestimate this truth, expecting that if an employee leaves, they will be able to quickly fill the position (Latimer, 2021)

    ReplyDelete

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