Problem
Kim Chambers is the owner of a software development business in the Perth CBD, "Software Innovations", which provides services to Western Australian businesses. Software designers and developers customise software development solutions, including web applications and mobile apps.
The business has 46 employees, including, 35 software designer/developers, five sales staff, four administrative support staff in HR and finance positions and two managers. The sales staff job is to find businesses that would benefit from the innovative customised software development solutions. The administrative support staff manage finance and human resource services. There is a manager leading the Designer/developer staff and an operations manager leading the sales and administrative support staff. Kim is the Chief Executive Officer.
The Designer/Developer staff have a degree in software development and are mostly employed on short-term contracts working on projects to produce innovative software development solutions. The sales staff are employed on a permanent basis with the focus of their performance being on sales revenue. The administrative support staff have job tenure, their work is routine, and their focus is on efficiency.
You have recently been hired as the HR Manager and Kim wants your advice on reward strategies to improve the development, motivation, and retention of her staff.
When answering these questions, define the terms, use examples to illustrate, and justify your responses based on evidence in the case and remuneration and reward concepts and theories covered in the Unit.
Task
A. Kim believes her company to have an Innovation business strategy and trialled a bonus reward strategy last year where designer/developer staff earned bonuses for innovative software solutions based on a detailed and challenging performance criteria. At the Staff Christmas party, Kim presented certificates of achievement to the staff who met the performance criteria and paid bonuses between $5,000 to $15,000 based on their performance. Overall employee performance increased by 20%, but Kim has read that money often is not an effective motivator, so she is wondering if the increase in performance is purely due to the bonus or if other factors may be at play. Advise Kim using Expectancy Theory of Motivation how bonuses may improve motivation and offer suggestions of what other factors may be at play in explaining the increase in performance in this situation.
B. Discuss how the four Total Reward Components below can help Software Innovations Pty Ltd to achieve the two organisational outcomes of Employee Retention and Employee Development for the administrative support staff, using examples to illustrate:
• Intrinsic Rewards
• Development Rewards
• Social Rewards
• Financial Reward.