Employee Motivation and Remuneration Issues for Organizational Success Assignment Sample

Discussion on key challenges related to motivation, assesses other problems, and provides suggestions to address these issues, including strengths and weaknesses of each option.

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Introduction Of The Remuneration Management Program Assignment

One of the major problems faced by businesses today is figuring out how to deal with the effects of remuneration on areas like policy-making, human resource management, and daily decision-making. Most significantly, pay policies have a major role in deciding the productivity and commitment of employees toward their job roles. The present report signifies internal and external environments affecting the organization's performance. Key issues relating to motivation and possible challenges the organization may face in the management of remuneration are also demonstrated in the report. Recommendation for a preferred remuneration plan is also illustrated in the present report.

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1. Identifying the internal and external environment, that might affect the organization’s key performance requirements and key success factors.

The researcher's study strategy identifies the internal environment, admitting the SWOT Model, and the external environment, acknowledging the PESTLE Analysis, which may have an impact on the organization's key success criteria and performance needs.

A SWOT analysis focuses on "strengths, weaknesses, opportunities and threats" and examines both internal and external elements that may have an impact on a company's operations(Surveyandini, 2022).


A SWOT analysis will assist the corporation in identifying profitable areas of its business such as financial strengths, labor strengths, etc.


Weaknesses are features that place the company at a competitive disadvantage. A SWOT analysis can assist the organization in identifying these traits and minimizing or improving them. Opportunities

A SWOT analysis can assist a corporation in identifying possibilities that it can use to increase revenues. External variables, such as new consumer trends and industry shifts, generate opportunities.


External variables such as market changes, a competitor's new advertising campaign, or new government regulation are examples of threats. A SWOT analysis can assist in identifying threats and potential countermeasures based on the company's strengths and weaknesses.

A PESTEL study, which stands for Political, Economic, Sociocultural, Technological, Environmental, and Legal elements, is a marketing method or framework. It may be used to filter the company's external marketing environment, making decision-making considerably easier(Madsen, 2022).

Political factors

Politics is crucial in business because there is a balance between control systems and free markets. As global economics trump domestic economics, the corporation must weigh multiple possibilities and challenges before expanding into new markets such as tax policies, government rules and regulations, and many more. It also applies to businesses determining ideal production or sales regions.

Economic Factors

Economic factors are measurements that assess the health of an economy, such as buyer disposable income, credit availability, unemployment rates, interest rates, inflation, and currency rates, which can all function as development factors for the firm.

Sociocultural element

Sociocultural elements examine persons' or consumers' mentalities in the intended market. These are sometimes referred to as demographic considerations in concern with purchasing behavior and how customer requirements influence the value and need of a product or service.

Technological factors

Technological progress may increase internal efficiency and prevent a good or service from becoming archaic. Excellent management skill is the ability to recognize changing technologies and maximize internal efficiencies such as new technical platforms, technological obsolescence, the rate of technological advancements, and discoveries and breakthroughs (e.g. VHS and DVD)

Environmental elements

These elements, which sometimes go by the name "ecological," entail physical modifications. Think more about how locations are impacted and less about the office setting, which would include employee communication.

Legal factors

This phase entails studying local rules and ordinances that could have an impact on a company, an idea, or a concept. It is essential for preventing needless legal fees. As a result of their creation by the government, they occasionally appear in the PESTEL analysis's political section.

2. Key issues relating to motivation

There are several problems and issues faced by the employees of Enrich Roofing which lead to low motivation for the employees. First and foremost, pay and compensation structure is a primary factor that leads to a lack of motivation for the employees of the organization. Eventually, this results in a high turnover rate the employees (Paul and Kee, 2020). Employees appreciate recognition for efforts that go above and beyond. Workers lose motivation because they perceive that their superiors or owners take their hard work for granted and there is no incentive structure in places, such as a sales extra or special monthly acknowledgment. The workers feel their compensation is much lower than the market norm and their salary is not commensurate with the effort and results they are expected to provide (Zafar et al., 2022). Due to less than market-rate compensation, several employees are less motivated and do less labor.

Several leaders of the organization do not consistently demonstrate expected behaviors, correct errors, and offer feedback which develops a disoriented attitude and feeling that results in barriers to making progress toward clear objectives. The manager of the organization lacks interest in their employees' work by providing constructive criticism and clear goals due to which employees contribute less effort towards their job role and responsibilities. This results in a decline in the productivity and morale of the employees. If a manager or employer does not consistently demonstrate expected behaviors, offer examples of good performance, and address errors, employees may feel disoriented and unable to make progress toward clear objectives (Gadi and Kee, 2018). It is possible to misconstrue a manager's interest in their employees' work performance if they do not provide enough feedback and clear expectations. This may make morale problems and productivity declines even more severe.

The organization does not offer rewards and recognition to deserving employees which leads to a low motivational attitude among the employees. This affects the quality of the work contributed by the employees in the operational process of the organization. Along with rewards, flexible working hours and extra leave are some of the elements of the non-financial incentive that are exempted from the organization. This creates a monotonous environment for employees that accelerates the turnover of the employees in the corporation. 

3. Assessment of other problems

After interpreting the issue of Erich's roofing it has been identified that there are issues with the employees and the employees are not getting the needed incentives. Other than these issues related to financial and non-financial incentives, another issue is that the firm is facing high turnover rates (Lazear, 2018).

Every organization has to invest time and capital to post for vacancies in different offline (like newspapers, television ad other) media and online (such as social media) channels. Arranging for the recruitment process also takes time and employees have to postpone important work to arrange the event. Moreover, organizations invest huge amounts to train and develop the selected employees. Organizations expect that skilled employees shall share similar organizational goals and remain in the organization. Their on-job experience further reshapes the employees positively and they become capable of to contribute towards the organization. Based on the performance and production, the firms decide the remuneration scale. Wherein, after such a long process, if the employees leave and the turnover rate increase then organizations face losses in terms of human labor, capital and time. Their financial planning and remuneration management also becomes unstable (Lazear, 2018). Thus, Enrich roofing needs to offer the desired pay structure to motivate the employees, retain them, and enhance their performance.

4. Suggestions to address the issues along with their strengths and weaknesses

The firm shall offer three types of payments to the employees. Such pay structure shall motivate them to remain in the organization as follows-

  • Initially, they shall offer competitive pay. It refers to a salary that is equal to the industry standard. It is the pay range that employers give to retain employees after comparing them to their competitors and secures high-quality employees (Lazear, 2018).

Strength- when employees are paid fairly and more, they become satisfied and spend more time on work rather than searching for better opportunities. Employees tend to get stable in the firm.

Weakness- firms that emphasize too much on pay might lack organizational culture. It fails to include a culture of motivation for a "pay for performance scheme". Here employees start assuming that they shall get standard wage and do not try to improve their performance (in case it would be a performance-based incentive, then employees tend to improve their performance to get the incentive).

  • Compensation initiatives- Next compensation incentives shall be given so that the employees become satisfied. Compensation benefits such as performance-based bonuses, stock options, and profit-sharing schemes shall be given.

Strength- employees feel motivated and tend to improve their performance (Tetiana et al., (2018). 

Weakness- the disadvantage is that the firm has to pay for overtime and work on holidays, and the overall budget shall increase.

  • Reward initiatives- Next to additionally attract employees’ reward initiatives shall be offered, such as offering financial or non-financial rewards for meeting the targets (Casser and Mier, 2018). It motivates the employees and makes them feel valued.

Strength- recognition, and encouragement give job satisfaction.

Weakness- non-financial rewards might not motivate certain employees.

5. Implementation details of the preferred option

Competitive pay, compensation incentive, and reward incentive are some of the options for addressing the motivational issues of their employees in the organization. Among the mentioned options, reward incentive is one of the preferred options that will help the organization in mitigating the turnover issues of the employees. In implementing the reward incentive plan the organization needs to focus on financial and non-financial rewards. This is one of the first elements of implementing the reward incentive plan for the employees. The organization needs to identify the types of elements that motivate the employees (Bussin and Christos, 2021). Rewards ranging from tangible items like trophies, plaques, and awards to monetary incentives like profit sharing, bonuses, and trips are some of the elements that have been identified by the organization in the context of financial and non-financial rewards. Implementation details of the reward incentive also include the contribution of human resources management and event sessions for rewarding and recognizing the employees among everyone.

Providing workers with a uniform benefit level rather than a variety of different plans is one of the best ways of developing a remuneration plan for the employees. This plan is also known as a flexible benefits plan where employees have the scope of receiving financial cash or using the plan for further needs in terms of any kind of physical diagnosis or treatment. Employees at all levels within the corporation earn the same amount on their first day of employment (Bussin and Christos, 2021). After that, workers and employees may decide how much of their benefits package to put toward things such as health insurance, retirement savings, or additional insurance policies like disability or long-term care. Cash payouts are an option for employees, but they will be responsible for paying any applicable taxes.

The flexible benefits plan not only benefits the employees but also the employers (Islam and Purnamasari, 2019). Employers that provide flex plans may find that it is beneficial as it helps them attract and retain the best employees. Since employee turnover is costly for businesses, satisfying workers' requirements in a straightforward and low-effort manner might help keep them from looking elsewhere for employment (Lisova, 2020). With a flex plan, the firm may choose the maximum cost each month, and hence the total cost of the plan for the year. This management aids in annual planning as the cost becomes a fixed and predictable component of business operations.


Motivational issues in the organization have led to serious issues for the organization. The issue has resulted in shortages of employees. Therefore, it can be concluded that the organization has been struggling and facing challenges in fulfilling the daily productivity and needs of the clients and customers. It has been found from the report that Competitive pay, compensation incentive, and reward incentive are some of the feasible options for mitigating the issues of employee turnover in the company. Among all the three options, the reward incentive is one of the options that will help the organization to motivate the employees and offer a sense of satisfaction towards their job role. Reward incentives provided financial and non-financial incentives to the employees. Furthermore, the incentive process also helps enable employee recognition which develops motivation among the employees. 


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