Driving Success: Analyzing the Costs and Benefits of Employee Motivation at Vroomz Company - Paper Example

Employee motivation refers to the level of energy employee commitment and creativity that employees apply in their jobs. In motivating employees, various costs are involved as they are covered by the company (Strauss et al., 2017). This paper analyses the costs of motivation for Vroomz Company, which focuses on manufacturing hybrid vehicles, and various policies taken by the company bring benefits as analyzed.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Employee motivation is critical for a company’s performance. Most of Vroomz's decision-making is made with consultation of all employees. Vroom employee’s motivation policy focuses on including employees in decisions for the organization. These decision policies have employee feedback sessions, town hall meetings, decisions on reduced leasing of company vehicles, paid vacation time, and educational reimbursement programs. The cost for motivating the employees includes a 30% off retail price and vacation time of 120 hours a year and $5250 education reimburse the program for undergraduate and $10,500 for graduate education.

For all organizations and companies, their goal is to be successful irrespective of the market competition. Making the right decisions is the key to achieving organizational goals and objectives. Vroomz's policy that involves employees making decisions for the organization is critical for the company. Motivating Vroomz employees will be intrinsically linked to high levels of engagement in terms of making appropriate decisions because the employees pay more attention to details and take every step for a good reason. Best terms can be agreed on leasing prices for vehicles. Motivating employees gives them a better stand-off, and they may help customers make the best decisions. This includes the decision to forego one brand of car and purchase another. This also makes them feel recognized by the organization and that their effort in the organization is appreciated. Therefore, they will work hard to improve the organization's production of vehicles.

Vroomz, through offering educational reimbursement programs to employees, gives them the opportunity to go back to school to gain more skills and accomplish their dreams. Accrediting and licensing programs in business organizations make employees knowledgeable and motivated. It also makes them have a positive attitude to the customers and confidence in what they do when building vehicles (Sridevi, 2010). Skills and knowledge that are acquired by Vroomz employees while at school, if applied to the business, can make the organization's productivity increase. Vroomz employees will be motivated to make high-quality vehicles for customers because they are highly skilled. Best-quality vehicles will attract many customers and be loyal, translating to more sales for the company. Accidents in the production line will also be minimized, and teamwork will be enhanced to increase its turnover.

Giving monetary incentives motivates employees. Vroomz, the offer of reduced leasing of companies' vehicles by 30%, lowers absenteeism in its workforce. This makes them feel motivated and desire to keep coming to work, hence making the company's productivity increase. Vroomz, by paying their staff when they are on vacation up to 120 hours a year, makes them feel encouraged when they come back to work. This improves their morale at the workplace and meets their demands even beyond the workplace. Giving them holidays offers them an opportunity to bond with their family members. Incorporation of time off from work makes employees feel confident about their work and also brings self-respect among them and creates job satisfaction for the workers (Soo, 2010).

Empowering employees by involving them in decision-making enables them to be innovative, creative, and flexible in the organization's workforce (Pierce et al., 2003). Vroomz management, by incorporating all their employees in the decision-making process, creates an elastic force and teamwork among the staff, thus allowing the company to respond swiftly to emerging market trends and competition and understand the behavior of competitors.

When Vroomz’s employees predict and understand the behaviors of competitors and the market, the company will gain more buyers because of the strategy. This will attract many customers and create satisfaction among them. Accidents in the workplace will also be reduced, and absenteeism will be minimal because employees will always be passionate about their work (Moran, 2013). Production costs will again go down, and teamwork among the staff will make the organization grow.

References

Moran, Barbara B. (2013). Library and information center management. Santa Barbara, CA: Libraries Unlimited. https://www.worldcat.org/title/library-and-information-center-management/oclc/780481202

Pierce, W.D.; Cameron, J.; Banko, K.M.; So, S. (2003). "Positive effects of rewards and performance standards on intrinsic motivation". The Psychology Record. pp. 561–579. https://opensiuc.lib.siu.edu/cgi/viewcontent.cgi?article=1498&context=tpr

Soo Jung Jang, R.P. (2010). "The interaction effects of scheduling control and work-life balance programs on job satisfaction and mental health". International Journal of Social Welfare. pp. 135–143. https://www.questia.com/library/journal/1P3-2938776651/family-roles-as-moderators-of-the-relationship-between

Sridevi, Sandhya (December 2010). "Employee engagement: the key to improving performance". International Journal of Business and Management. http://www.ccsenet.org/journal/index.php/ijbm/article/view/6745

Strauss, K., Parker, S. K., & O'Shea, D. (2017). When does proactivity have a cost? Motivation at work moderates the effects of proactive work behavior on employee job strain. Journal of Vocational Behavior, 100, 15-26. https://www.sciencedirect.com/science/article/abs/pii/S0001879117300064