Cost Neutral Incentives For Human Service Employees

Cost Neutral Incentives For Human Service Employees

by David Keegan

The Research QuestionThe Research Question

Is it feasible for youth accommodation services to

attract, motivate and retain staff within a

resource limited environment by the use of an employee rewards and

incentives program?

Is it feasible for youth accommodation services to

attract, motivate and retain staff within a

resource limited environment by the use of an employee rewards and

incentives program?

MethodMethod

1. Questionaire- 25 questions (14 choice questions and 10 written responses)

- qualitative and quantitative data

2. Informal Interviews- service managers and HR people

- not specifically documented

3. Literature Review

1. Questionaire- 25 questions (14 choice questions and 10 written responses)

- qualitative and quantitative data

2. Informal Interviews- service managers and HR people

- not specifically documented

3. Literature Review

LiteratureLiterature

There is a lot of literature on incentives and rewards in the for profit sector but very limited material is available on this topic for the non profit sector.

The literature from the non profit sector mainly focussed on supervision and appraisal systems as well as physical environment issues and mission connect.

There is a lot of literature on incentives and rewards in the for profit sector but very limited material is available on this topic for the non profit sector.

The literature from the non profit sector mainly focussed on supervision and appraisal systems as well as physical environment issues and mission connect.

LiteratureLiterature

“Research on what employee’s value for rewards and recognition indicated a

monetary reward only ranked 12th in a list of items important to employees….. studies indicate that when employees

receive a monetary bonus it is typically used to pay bills, expenses or purchase something that the employee needs, not

some thing they truly enjoy. Consequently money becomes a very

impersonal gift” (Recognition Rewards Enterprises Website 2005)

“Research on what employee’s value for rewards and recognition indicated a

monetary reward only ranked 12th in a list of items important to employees….. studies indicate that when employees

receive a monetary bonus it is typically used to pay bills, expenses or purchase something that the employee needs, not

some thing they truly enjoy. Consequently money becomes a very

impersonal gift” (Recognition Rewards Enterprises Website 2005)

LiteratureLiterature

Anne Preston has written a paper in which she highlights Maslow’s hierarchy of needs as a reason why financial remuneration is not the only driver.

She also highlights the role of the mission and other altruistic factors in attracting and retaining staff in the non profit sector.

Anne Preston has written a paper in which she highlights Maslow’s hierarchy of needs as a reason why financial remuneration is not the only driver.

She also highlights the role of the mission and other altruistic factors in attracting and retaining staff in the non profit sector.

LiteratureLiterature

Mercer Human Resource Consulting in their What’s WorkingTM survey (Hutchison, Sandy; Fralicx, Rod; Kelley, Sam;

Gilbert, Patrick 2004) found that “Australian employees: who are not receiving adequate training and

development will leave their organisation are committed and satisfied when their manager

encourages two way communication will leave the organisation if they don’t trust their

manager or are not treated fairly do not generally believe that good performance is

rewarded who believe they have a long term future with their

organisation are more committed”

Mercer Human Resource Consulting in their What’s WorkingTM survey (Hutchison, Sandy; Fralicx, Rod; Kelley, Sam;

Gilbert, Patrick 2004) found that “Australian employees: who are not receiving adequate training and

development will leave their organisation are committed and satisfied when their manager

encourages two way communication will leave the organisation if they don’t trust their

manager or are not treated fairly do not generally believe that good performance is

rewarded who believe they have a long term future with their

organisation are more committed”

ResultsResults

Key Findings Summary

Participants identified 4 factors that significantly influence attraction and retention in the workplace:

1. The mission, values and purpose of the organisation

2. A supportive team environment including management support and leadership

3. The opportunity to learn and develop in the job

4. Clearly identifiable positive outcomes for the clients.

Key Findings Summary

Participants identified 4 factors that significantly influence attraction and retention in the workplace:

1. The mission, values and purpose of the organisation

2. A supportive team environment including management support and leadership

3. The opportunity to learn and develop in the job

4. Clearly identifiable positive outcomes for the clients.

ResultsResults

1. The mission, values and purpose of the organisation

Participants stated that they were aware of the mission and values of their organisation and that these motivated them in their day to day work. This was particularly characteristic of the larger religious organisations.

However approximately half of the participants stated that the mission and values of their organisation did not lead them to work for the organisation.

1. The mission, values and purpose of the organisation

Participants stated that they were aware of the mission and values of their organisation and that these motivated them in their day to day work. This was particularly characteristic of the larger religious organisations.

However approximately half of the participants stated that the mission and values of their organisation did not lead them to work for the organisation.

ResultsResults

2. A supportive team environment including management support and leadership

Participants consistently listed a supportive team environment as a source of motivation particularly in difficult times

Many participants included supportive management in their comments about team support.

Teams were also referred to as like a family

2. A supportive team environment including management support and leadership

Participants consistently listed a supportive team environment as a source of motivation particularly in difficult times

Many participants included supportive management in their comments about team support.

Teams were also referred to as like a family

ResultsResults

3. The opportunity to learn and develop in the job

The opportunity to learn and develop through access to training and advancement were consistently listed as reasons for working for or remaining in an organisation

Many workers felt like they were unable to pursue training and development goals in their organisation

Workers wanted flexible conditions and study leave to allow for access to training

3. The opportunity to learn and develop in the job

The opportunity to learn and develop through access to training and advancement were consistently listed as reasons for working for or remaining in an organisation

Many workers felt like they were unable to pursue training and development goals in their organisation

Workers wanted flexible conditions and study leave to allow for access to training

ResultsResults

4. Clearly identifiable positive outcomes for the clients.

Clearly identifiable and celebrated achievements by young people were consistently listed as reasons for remaining at work and as motivating factors at work. This also correlated with the reasons why employees entered the youth work field.

Some employees felt that they needed to remain so that they would not let the young people down.

4. Clearly identifiable positive outcomes for the clients.

Clearly identifiable and celebrated achievements by young people were consistently listed as reasons for remaining at work and as motivating factors at work. This also correlated with the reasons why employees entered the youth work field.

Some employees felt that they needed to remain so that they would not let the young people down.

ResultsResults

Other factors.

Participants also valued the opportunity to take initiative and to be involved in decision making processes at work

Flexibility in workplace conditions to accommodate for life’s unforseen events was also identified as a significant attractor

Most participants stated that they found admin work to be boring and/or mundane and many found it frustrating as it withdrew them from the young people.

In an ideal workplace many participants would like to also see additional resources for the young people

Other factors.

Participants also valued the opportunity to take initiative and to be involved in decision making processes at work

Flexibility in workplace conditions to accommodate for life’s unforseen events was also identified as a significant attractor

Most participants stated that they found admin work to be boring and/or mundane and many found it frustrating as it withdrew them from the young people.

In an ideal workplace many participants would like to also see additional resources for the young people

StrategiesStrategies

This research indicates that remuneration is not significant in retaining or developing staff. Participants did list salary packaging as an attractor yet did not seem to list this or remuneration as significant when identifying motivators and attractors. However this research is not conclusive on this matter and the literature states that organisations must base remuneration and conditions on industry standards.

The following are some suggested low cost strategies arising from this research…

This research indicates that remuneration is not significant in retaining or developing staff. Participants did list salary packaging as an attractor yet did not seem to list this or remuneration as significant when identifying motivators and attractors. However this research is not conclusive on this matter and the literature states that organisations must base remuneration and conditions on industry standards.

The following are some suggested low cost strategies arising from this research…

StrategiesStrategies

Fostering a supportive and positive team environment

Ensuring that staff have adequate support and leadership from management

Actively celebrating behaviours that match the mission and values of an organisation

Actively promoting and celebrating positive client outcomes on a regular basis

Actively highlighting the mission and values of the organisation in recruitment processes and in media and other publications.

Fostering a supportive and positive team environment

Ensuring that staff have adequate support and leadership from management

Actively celebrating behaviours that match the mission and values of an organisation

Actively promoting and celebrating positive client outcomes on a regular basis

Actively highlighting the mission and values of the organisation in recruitment processes and in media and other publications.

StrategiesStrategies

Fostering opportunities for training and development within and between organisations. This can also include opportunities to act up. For smaller organisations it can mean sharing opportunities across agencies.

Ensure that attention is given to the cleanliness and presentation of the physical environment for employees as this will affect their sense of worth within the organisation.

Make the effort to provide flexible arrangements for employees to accommodate family and other commitments within reasonable limits.

Make salary packaging available to all staff if there is the means to do so (eg. If the organisation is a registered charity)

Fostering opportunities for training and development within and between organisations. This can also include opportunities to act up. For smaller organisations it can mean sharing opportunities across agencies.

Ensure that attention is given to the cleanliness and presentation of the physical environment for employees as this will affect their sense of worth within the organisation.

Make the effort to provide flexible arrangements for employees to accommodate family and other commitments within reasonable limits.

Make salary packaging available to all staff if there is the means to do so (eg. If the organisation is a registered charity)

StrategiesStrategies

Encourage and allow innovation in service provision Make an effort to give employees the opportunity to be

included in organisational decisions that affect them.

Other factors to consider that may cost the organisation financially are:

Ensure a commitment to staff development and training by allocating a realistic training budget that will allow for some individually tailored training plans.

Research what other local employers are offering financially and what conditions they are offering. Then ensure that your organisation is at least comparable in what it offers financially compared to others in your area.

Encourage and allow innovation in service provision Make an effort to give employees the opportunity to be

included in organisational decisions that affect them.

Other factors to consider that may cost the organisation financially are:

Ensure a commitment to staff development and training by allocating a realistic training budget that will allow for some individually tailored training plans.

Research what other local employers are offering financially and what conditions they are offering. Then ensure that your organisation is at least comparable in what it offers financially compared to others in your area.

StrategiesStrategies

• Consider ways to offer additional award gradings beyond the limits of the award based on performance appraisals and not based on years of service. This may be in the form of financial or non financial benefits. Preston (2005) states that “deferred benefits that increase with seniority encourage retention of employees, which cuts down on hiring and training costs, increases institutional human capital, and often results in higher institutional loyalty.”

• Consider ways to offer additional award gradings beyond the limits of the award based on performance appraisals and not based on years of service. This may be in the form of financial or non financial benefits. Preston (2005) states that “deferred benefits that increase with seniority encourage retention of employees, which cuts down on hiring and training costs, increases institutional human capital, and often results in higher institutional loyalty.”

What does this mean?What does this mean?

The research demonstrates that there are non financial factors available to non profit service providers that can be manipulated to motivate, attract and retain staff.

The challenge is for organisations to develop policy and management practices that target these motivators and consider them in their budgets.

The research demonstrates that there are non financial factors available to non profit service providers that can be manipulated to motivate, attract and retain staff.

The challenge is for organisations to develop policy and management practices that target these motivators and consider them in their budgets.

What does this mean?What does this mean?

There is a need to test these results in a real organisation over a sustained period of time in order to measure improved motivation and staff outcomes.

The research however provides evidence of non financial motivators in the non profit workforce that should be considered when developing a human resource strategy.

There is a need to test these results in a real organisation over a sustained period of time in order to measure improved motivation and staff outcomes.

The research however provides evidence of non financial motivators in the non profit workforce that should be considered when developing a human resource strategy.

Contact DetailsContact Details

David KeeganMarist Youth CareSt Vincent’s Adolescent CarePo Box 49Westmead(02) 9635 5699davidk@maristyc.com.au

David KeeganMarist Youth CareSt Vincent’s Adolescent CarePo Box 49Westmead(02) 9635 5699davidk@maristyc.com.au