How to motivate staff?

 

The success of any business is closely tied to the degree of motivation of its employees. A happy and hardworking team leads to high levels of productivity, which in turn leads to profitability for the entire organization. When morale is low, however, nothing seems to turn out well, and it\’s a good bet that employee turnover levels will increase, as well. High turnover rates mean that management is constantly hiring new staff, expending both time and financial resources to bring new hires up to speed. It\’s hard for any business to maintain a level of success when employees aren\’t feeling happy and fulfilled; satisfied employees make positive contributions to the company\’s bottom line.

Although the process of employee motivation is almost as much an art as it is a science, there are some general guidelines as to how successful companies effectively motivate their staff. The following points have been culled from the organizational policies and procedures, employee performance systems, and compensation systems that have been effectively utilized within many of today\’s most profitable organizations.

Organizational Goal Alignment

The primary consideration when designing an effective employee motivation system is that it must be aligned with the strategic goals of the business. Any program that offers rewards for behaviours or accomplishments must ensure that these behaviours or accomplishments serve the best interests of the company. An exceptional employee motivational system ensures that all employees are working as a whole in the direction in which the business plans to move.

Don\’t be Afraid to Set an Example

Not every employee will be a success as a member of the organization. In spite of your best efforts, there will always be a few individuals who, despite plenty of training, support, and encouragement, repeatedly fail to meet their goals. Non-performing employees need to be disciplined or discharged, not only for the sake of the company\’s profitability, but also as a clear signal to other employees that they are expected to meet their goals.

In fact, research conducted across multiple corporations has identified that the failure to fire non-performing employees is highly de-motivating to other employees, as it signals that management is not concerned with whether employees meet there goals or not.

Empower Employees

Once you have met with each employee to determine what motivates them and designed goals and rewards that are commensurate, empower your employees to determine exactly how they will reach their goals. Micromanaging is a behaviour that many employees find to be de-motivating, so trust in the people that you have hired to carry out their activities in concert with their goals, which are aligned with the company\’s goals as a whole. Of course, status checks are an excellent idea to make sure that an employee is not stuck or heading off in a divergent direction, but by stepping back and letting the employee direct their own efforts, you allow them autonomy and a increased sense of accomplishment in their efforts.

Reward the Behaviours You Wish to Encourage

Once the motivating factors for each employee have been determined, it\’s time to set up a motivational system to encourage each staff member to perform in accordance with the organizational goals in order to earn rewards and recognition. Design the program so that each employee is provided with specific, attainable and realistic goals which are associated with positive performance in the capacity of their position. Make sure to practice objectivity when designing the motivational system and assessing progress; focus on employee behaviour and achievement, and not on individual personalities.

Celebrate and Reward Achievements

Even the most motivated employees will lose their enthusiasm if they feel that their achievements go unnoticed. Be sure to acknowledge progress and make a big deal when a staff member meets or exceeds their goals. Post results so that other employees can see that success is noticed and celebrated. Without adequate acknowledgment of their successful efforts, employees are likely to become cynical with management and frustrated in their work efforts.

Employee Motivation is an Ongoing Process

Because the people who make up the staff of an organization can change over time, employee motivational systems must be fluid and be regularly assessed and revised. As employees become more skilled and more proficient at accomplishing their goals over time, their motivations may change. In a similar fashion, the goals of the organization can and will shift as time progresses, so employee goals and motivation programs may need to be updated to reflect the organization\’s new direction.

Written By John Finnegan

The UK Pension Fund Change And What It Means For You And Your Company

 

The UK Pension Fund Change which started on Easter Monday 2015 has many implications for businesses around the country. In a survey made by the CBI, 80% of top executives are against the constant pension changes made by the government given the costs and compliance burdens they come with.


So are UK Pension Fund Changes Good or Bad for Businesses?

In general, it seems it is a bad move. Given the fact that tax benefits are being cut, employees may not feel motivated to save in UK Pensions. Only 25% of the total amount is tax-free. However, if the employee\’s non-tax free amount plus his or her income exceeds £42,386, tax will go up to 40%. If the total amount is over £100,000, the personal allowance is lost.

Most UK businesses ask for stability in terms of UK pension regulations. This is because when a new reform is introduced it is always for the detriment of the employee and thus, the business itself.
Another factor that is causing concern among businesses is the “pension freedoms” issue. Pension freedom means that the employee can withdraw the entire sum saved in one or a series of payments to be used as he or she desires it when reaching age 55. This leaves businesses with a problem since older employees may decide to spend a significant amount of it instead of saving it as retirement funds. Thus, businesses will have to provide them with jobs for longer and longer periods of time. Human resources departments will have to deal with this issue in some way or another. Pension freedoms don\’t require employees to buy an annuity, thus creating a potential of many people left without or with little savings as they get older.
The auto-enrolment rule has also caused rising costs and compliance issues, especially among smaller companies. As processes get more complicated, expenses also rise and this affects the company from a financial point of view. On top of that, lack of compliance in every little detail can also cause delays and possible fines.
The new UK Pension Fund Change has also stated that the maximum amount of money that can be saved in a tax-free pension pot will come down from £1.8 million to £1 million. Employees with higher savings are now more discouraged to save in this new scheme.
Many businesses use pensions as a form to attract and retain employees. With these recent changes, they won\’t be able to use that tool as effectively as they used to. This could mean more potential loses as the cost of losing an employee could range from 30 to 100% of the employee\’s annual salary. On top of that, they wouldn\’t be able to use a pension scheme as bait to attract new talent but would have to resort to other more costly and complex methods.

UK Pension Fund Changes: Employee vs Employer
Employers aren\’t the only losers with the new UK pension fund change. Employees will also see their taxes being increased and thus, their total savings being reduced accordingly. There new limit on the total amount of the pension pot will also reduce the income received annually. Thus, the quality of life for retirees will diminish significantly.
One thing that worries both employers and employees is a possible new fraud wave. Pension freedoms are an easy way for scammers to withdraw other people\’s savings. The way fraud is now being committed is that the fraudster calls a person reaching age 55 and tells them he is the representative of a company that invests in high-growth start ups or other similar investments promising attractive returns. This way, employees are lured to take their money out and put them in the fraudster\’s accounts. It is important for businesses to inform their employees about this illegal activity which could leave them empty handed.
Qualifying for a full state pension will also become increasingly harder. It is estimated that less than 50% of people will see the full amount. And with possible changes in the future, this number could go down.
If employees don\’t have financial education or a competent adviser they might risk running out of money before they pass away. This could also create a social problem for the UK itself.
The only positive thing for employees with this change is that it will be easier to transfer it to his or her dependents. If the person dies before turning 75, no tax will be applied. If aged over 75 at the time of death, the inheritors will pay a 45% tax instead of the prior 55% tax rate.

Written by Eddie Maguire

When Is The Right Time To Add A New Product To Your Business?

 

There are many new products that are launched every year by companies all around the world. But if you look at the success rate, you can see only few of them are successful. Launching a new product needs a lot of planning because if it is not launched at the right time it will not be as successful as you want it to be. There are a lot of factors that depend on the success of a new product.

 

What Are The Factors?

First of all, it takes a lot of strategy, time, as well as resources when you are planning to create a new product. So, before you start planning for the new product launch, consider these factors:

 

– Ready to meet market needs? 

First and foremost determine whether or not your company is ready for a product addition and whether or not you can meet the market needs. If you are adding a product then there should be an objective behind it. Do the customers really need that product? Are you fulfilling their needs with this product? This is very important.

 

Consider competition?

When you are thinking of adding new products to your own company portfolio, you have to consider your competition. If you are launching the same product that your competitor has already launched then there needs to be a reason why people will buy your product? So, you need to think differently and outside the box. When you have a different or innovative idea in your mind about that you believe will be highly beneficial as well as offering something different from the competitor’s product then you can think about adding it.

 

Fit for the market?

You have to know and realize whether or not the product you are launching is fit for your market. The sales of your product will increase only when people will get something beneficial from the product. For instance: there are a lot of products already in the market related to anti-aging. So, is your product fit enough for a competitive market? What is the difference? Also, you have to be clear about the target audience and whether or not they are interested in such a product.

 

Follow ups?

When you are launching a product you have to plan whether you want to release any follow up product. A better and upgraded product is always an attraction and also helps in customer growth. For instance: If you are planning to launch a phone or any other electronics product then you have to make sure that you keep  upgrading it along with the advancement of technologies. If you are not coming up with follow ups then the demand will generally decrease as it will become out dated.

 

Resources?

Another important area is proper resources. Resources are essential to produce and manufacture the product that you are adding. So, it is very important to have proper resources as well as a proper plan too. You need to plan well and come up with proper strategies regarding the resources and from where you are going to import them. For this, you also have to make a full budget. This will help you to run the business smoothly without any issues.

 

Conclusion

When you are launching a new product for your business you have to keep several things in your mind. It is not a simple task and requires proper planning, including budgeting, resource planning, pricing, manufacturing and also marketing. You have to understand that the marketing is very important for a new product. This will help your product to reach the desired target audience. So, before you launch this product into the market you have to clearly plan each and every step. You need to understand that when a product is first introduced to the market it needs a lot of attention to take hold in that market. So, make sure it is the right time for adding a new product otherwise you can have a huge loss.

Written By Jim Finnegan

Fieldmotion Field Services and Workflow Management Software

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