The aim of this study is to understand the reward and recognition programs and their influence on employee performance in the UK sector. The objectives of this study are: to understand the importance of reward and recognition programs in the UK retail sector; to evaluate several reward and recognition programs used in the UK retail sector, to understand the importance of employee performance in the UK retail sector, to analyze the impact of reward and recognition programs on the employee performance in the UK retail sector; and to provide suggestions for the UK retailers so that they can improve the effectiveness of reward and recognition programs to influence employee performance
This study applies both deductive and inductive approaches along with the descriptive and explanatory design. Both quantitative and qualitative research methods have been applied. As research instruments, survey and interview techniques have been applied in this study. The quantitative data is analyzed that were collected through a survey on 30 staffs of Lidl. Then, the qualitative data is analyzed that were collected through interviews on 6 staffs of Lidl.
The finding of survey data shows that 33.30% of participants suggest on the Make sure employees view the reward system as fair. 30.00% of participants suggest rewards to performance. 20.00% of participants suggest on Set reasonable and transparent performance. 10.00% of participants suggest the Provide rewards immediately after the employee achieves the desired behavior standards for rewards. 6.70% of participants suggest the Use long-term rewards programs. On the other hand, the finding of interview data shows that the key suggestions that the participants provided are Lidl should improve maternity and paternity facilities, holiday facilities, insurance facilities, medical facilities and pension facilities. In addition, sales target should be more realistic so that staffs can meet.
CHAPTER ONE: INTRODUCTION
In the age of globalization and in the global competitive labor market, organizations face challenges to retain and make loyal their staff. In another word, retaining skilled and experienced staffs play a significant role in the way of gaining sustainable competitive advantages (Mullins, 2014). This is because talent and high-quality staff can provide higher productivity and performance that, in turn, increase organizational performance and productivity by offering competitive advantages in the marketplace. Armstrong (2013) stated that effective rewards and recognition programs significantly boost up staff performance and productivity, and motivate them in the workplace to be retained and loyal. This study critically analyzed how rewards and recognition programs are influencing staff performance in the UK retail sector by focusing on the Lidl business case.
1.1 Research background
Reward and recognition programs refer to the tools and techniques applied by organizations to motivate staff in the workplace, to enhance staff performance and productivity, and to retain staff for a long-time period. Building up a harmonious relationship with staff and treating them as business assets bring opportunity for both existing and future business (Pratheepkanth, 2011). Thus, organizations need to fulfill staff needs and expectations recognizing their contributions and efforts by offering attractive rewards and recognition programs to develop an effective workforce for business success. When an organization recognizes employee efforts and promotes staff morale results, the staffs show enhanced performance and productivity (Aktar et al., 2012).
However, developing and implementing a reward and recognition program must be carefully analyzed and evaluated based on the business procedures and policies. Additionally, a reward and recognition program should be aligned with the business mission, vision, and goals. Organizations can offer to combine monetary and non-monitory rewards to attract and retain talent and quality staff and motivate them to contribute to more organizational success. In terms of developing rewards and recognition programs, management needs to keep in mind that wider benefits should be included, and need effective planning and its implementation (Mullins, 2014).
On the other hand, employee performance refers to the staff behaviors in the workplace and how well staff performs their duties and responsibilities they are obligated. Organizational performance is always measured by staff performance (Obisi, 2011). Desired organizational performance along with its resultant effectiveness and efficiency can be achieved by enhancing staff performance (Bhasin, 2019). Hence, businesses need to carefully set up a reward system for evaluating and increasing staff performance at all levels. Effective and efficient performance management includes reward systems that staff need with organizational goals, reward staffs, train and develop the staffs to meet organizational goals. A combination of monetary and non-monetary rewards, intrinsic and extrinsic rewards drive staff to perform better in the workplace. Mullins (2014) said an effective and efficient reward and recognition system boost ups harmonious relationship between organizations and their staff that ultimately improve staff performance.
1.2 Organisational Background
The retail grocery shop was first launched in Germany in the year of 1930. After that; there are different retailers formed in Europe. Lidl is a retail shop that started its business activities in 1973. After starting; Lidl is able to create a good image in the market in Germany. In 1990, Lidl initiated and opened branches rest of the countries in Europe. Lidl opened several network shops all over Europe. After that Lidl started its business functions in the UK in 1994. At present, Lidl has 600 stores all over the Europe and UK especially 300 stores in Europe and the customers’ acceptance is incredible. But in 1979, Lidl had only 30 stores. The number of workers in every shop is nearly 7 and Lidl has 900 product lines (Lidl, 2019). The most important reason for customers’ acceptance of Lidl is the discount service. This paper analyses the impact of reward and recognition programs’ influence on employee’s performance in the retail sector of the UK especially for Lidl (Lidl, 2019).
1.3 Problem Statement
Due to the welfare of employees as well as the business firm; it is the most important concern that the establishment of good staff reward and recognition schemes. In the case of retail sectors of the UK; this factor is very important because the efficiency and motivation of the employees depend on staff reward and recognition as well as the success of retail sectors in terms of profitability and liquidity (Mullins, 2014). But; it is a matter of regret that these reward and recognition schemes are not well developed in the retail sections of the UK. Evaluation of Performance Contracting Report revealed that only the public sector of UK measures the level of professionalism, level of competitiveness, the power of creativity and target achieving pattern of the employees (Danish, 2010).
According to Ayomikun (2017), staff reward and recognition schemes have two positive outcomes. First, one is recruiting and influencing the employees who have a high level of performance quality and the second one is to ensure the motivation of the employees that encourage them to act for the company. Are the staff reward and recognition schemes affecting the employees’ performance level? How Lidl arranges rewards and recognition shames for their employees? What are the methods of giving rewards to the employees that used by Lidl? To collect the answer to these problems; this research work will be completed.
This paper has significant importance on the development of retail sectors of UK by arranging and investing three scopes. At the primary stage, the main aim of the research includes identifying the features and categories of reward schemes, especially for Lidl. In the secondary stage; this research demonstrates the actual method and structure of the reward system. This section also includes the identification of the influence of reward schemes on the employees’ performance for the well-being of retail sectors of the UK. Every business firm is controlled by employees that indicate employees are the vital factors for the business firm (San and Theen, 2012).
They are the parties who bring positive outcomes for the business firms especially for the retail industry (Torrington et al, 2015). But the positive response of the employees is depending on several issues especially reward schemes. Reward schemes and recognitions for the workers are used by retail sectors to motivate them and get full concentration from them to gain the success of retail firms (Mullins, 2014).
At present; Lidl is a market leader in the retail industry and this firm can able to increase its market share on the basis of its popularity. But the sustainable popularity of this retail firm depends on the performance of the employees. Therefore; it is no doubt that good performance is not only useful for the growth of market share but also ensures sustainable development. This study does several programs for developing the awareness of the employees about the reward systems on performance. Individual performance is very important to gain success of individual development that ultimately affects the prosperity of the retail sections business firms.
Thirdly; this research paper mentions different outcomes of previous researches that give importance to the reward system has a great influence on organizational performance. At the last part; this research paper recommends some valuable suggestions for Lidl to utilize the reward schemes inefficient manner to develop the employees’ quality level of performance for the accomplishment of future objectives of the firm. These suggestions are not only for Lidl because these suggestions also help other retailers in the UK.
1.5 Research aim and objectives
The aim of this study is to understand the reward and recognition programs and their influence on employee performance in the UK sector. Then, the study will provide recommendations to the retailers on how they can improve the effectiveness of reward and recognition programs to improve staff performance in the workplace………………….
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