Strategy to Improve the Corporate Productivity

Question: Discuss about the strategy to improve the corporate productivity by introducing a right degree of employee engagement and the wage structure within the workforce. Answer: 1.0 Introduction: Meeting an organisational success has become a crucial challenge today due to the changing needs of the customers and the increased competition among the marketers. Several successful organisations are firmly committed to looking after greater employee engagement and compensation factors, due to the belief that fostering employee satisfaction could lead to the greater employee commitment. In this regards, Hirsh (2008) stated that compensation is a transition between the employee and the employer which drives significant outcomes of the employment contract. Additionally, Thau Mitchell (2010) also identified that the modern business organisations are experiencing higher turnover due to the greater dissatisfaction index of the educated employee as compared to the lesser trained staffs. This is due to the gap between the perceived value of the compensation and the received value of the firm (Greenbaum et al. 2014). As a consequence, the turnover rate increases, which, again reducing the overall output of the organisation. However, Simpson (2015) also mentioned that the globalisation has introduced cross-culturally diversified workforce within the MNEs which also affects the overall employee engagement a compensation strategy. Depending on the geographic location and other socioeconomic factors, the compensation benefits get altered. The cross-cultural dimensions such as power distance and uncertainty avoidance also impact on the employee engagement index in the decision making the process as well (theretailsolution.com.au, 2016). As a consequence, the overall operational attributes gets changed in the global operation, which directly impacts on the organisational performance. Past literature indicates that wage structure could introduce more than 45% motivation within the workforce while the employee engagement and flexibility generate more than 53% motivation across different industrial platforms (Deepa Kuppusamy, 2011). It has also drawn a proportional relationship between the wages and the employee engagement as well. The empirical study on the Australian retail industry indicates that compensation against the time spent in the organisation generates the path of work life balances and the job satisfaction index. In addition to that greater job satisfaction enhances employee commitment towards the organisation, thereby resulting improved organisational performance (Javed et al. 2014). Training and development are considered as a vital, influential antecedent of the employee engagement, as it generates dual importance to the ambitious employee. Supporting to this fact, Mikkelsen et al. (2015) stated that training and development activity is considered a s another imperative for the goal achievement and career growth opportunities for the workforce as well. Thus, the training and development business is the real driver of the improved work performance. Considering the fact, the present study attempts to identify the impact of the wages and the employee engagement in the decision making process on the overall work performance and the growth of the firm. The study has been divided into three sections. Section 1 comprised of evaluating the problem statement, objectives and the question of the research. Along with this, the research rationale has been discussed in the current study, followed by the expected outcome as well. Section 2 consists of the conceptual framework, methodology and the research hypothesis supported by the organisation of the study followed by the Gantt chart in section 3, to show the time span that would be needed to complete the study successfully. 1.1 Problem statement: The entrance of multinational enterprises and the variety of jobs are creating uncertainty with regards to the employee retention scenario. The statistical data has revealed the fact that organisational commitment (such as employee engagement and potential compensation benefit) and the worker productivity issues are increasing in the same proportions. It has now become one of the most critical challenges of the present and the future sustainability management of the market leaders, as it is mainly driven by the employee loyalty index. In this context, Haski-Leventhal (2012) assessed that the majority of the multinational enterprises is trying to retain employees by allowing the employee in the strategic decision making process and by regulating the compensation benefits as well. However, due to the rigidity of the organisational structure, a few SMEs fail to motivate employees to participate in the decision making process, thereby creating demotivation within the workforce. Eventuall y, the employee attrition rate increased which directly affects the overall organisational performance. Past surveys on the employee motivation revealed the fact that employees are motivated with regards to either intrinsic or extrinsic factor (Kuang Moser, 2011). The flexibility in the decision making process and active participation acts as the intrinsic motivation process, which is not followed by the majority of the business organisation. On the other hand, the monetary benefits are considered as the prime sources of motivating employees, which is only satisfying a lesser amount of employees to be retained in the organisation (Ã…Â ½aptorius, 2013). Thus, the research issue is to identify the impact of the wages and the worker engagement I the decision making process on the overall work performance and the growth of the organisation. Additionally, the study would also scrutinise the factors the drives the growth of the group by improving the overall motivation of the employees. 1.2 Research objectives: The overall aim of the current study is to investigate the effect of employee engagement and wage structure on the overall workforce performance of the modern day business organisations. The study aims to answer the research questions mentioned below: The objective of the present research study is as follows: RO1: To identify the significance of the wages and engagement on improving the workforce performance RO2: To assess the factors influencing the employee work performance on a larger scale RO3: To evaluate the relationship between the compensation and engagement on the overall job performance and the employee retention index of the organisation 1.3 Research questions: The question of the research is as follows: RQ1: What is the significance of the employee engagement and the compensation benefit with the overall workforce performance? RQ2: Which organisational factors could highly influence the overall employee work performance on a larger scale RQ3: How the compensation and the worker engagement parameter are interlinked with the overall growth and the employee retention of the firm? 1.4 Justification of the Project: The organisational sustainability is highly driven by the distinctive corporate culture aligned across all workstations. The great spirit of the work culture is driven by engaging the existing employees within the organisational decision making process. Supporting to this fact, Brajer-Marczak (2014) stated that the top performing MNEs allow optimum employee engagement and reduce the turnover of the high performing staff. The PWC report shows that the employee turnover cost in the Australia was estimated $3.8 billion in the productivity loss and $385 million in its avoidable recruitment costs (theretailsolution.com.au, 2016). Although this value has been found lesser than other developed economies, the survey report also shows that the entrance of new MNEs and SMEs are creating various job opportunities, which is gain becoming a significant threat to the existing local MNEs. Eventually, it is reducing the employee retention index. A great degree of employee engagement and alignment of the organisational value with the all hierarchical levels could build a culture of the mutual respect and greater engagement in the goal meetings purpose. Additionally, right wage structure and additional bonus, on the commitment towards the firm, executed by the workforce could positively motivate employees to enhance the overall performance. Thus, the firms could attain a sustainable brand positioning in the global market. Under the current circumstances below mentioned benefits could be accomplished, while conducting the research: The study could help the managers to frame the strategic decision regarding the employee engagement and wage structure that could be helpful in improving the employee commitment towards the project account. The report would also be useful to the business owners of the small medium enterprise, researchers and the policy makers as well. The proposal can also help to improve the perception regarding the interrelationship between the wages and employee engagement with the overall organisational productivity. 1.5 Expected research outcome: The result of the current study could help the current business leaders developing a potential strategy to improve the corporate productivity by introducing a right degree of employee engagement and the wage structure within the workforce. In addition to that, the outcome of the study could also help to generate an analytical framework for evaluating the factors that influence the overall performance of the workforce. Although the study has been made considering a generalised scenario irrespective of the SMEs and MNEs, the overall outcome will help to understand regarding the relationship between the employee engagement and wage with the productivity. Additionally, it would also contribute to identifying other intrinsic and extrinsic factors influencing the overall organisational performance as well. Moreover, the research outputs would be treated as the important academic work which could benefit the future researcher introducing the start-up business ventures in the diversified wor k environment. Finally, it could also guide the MNEs to improve their existing employee retention rate and the overall organisational performance in the global business context. References: Beltaos, S., Tang, P. Rowsell, R. 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