HR Strategies for Employee Motivation

Introduction

HR practices are considered highly significant for the growth and development of an organization. Various studies indicate that there are many strategies, which are practiced by the HR managers in organizations for enhancing the performances of the employees (Lawler, 2012). Some of these practices may include recruitment, training and development employee motivation and many more. It is found that employee motivation is a significant factor, which greatly affects the level of performance of the employees as well as their commitment and productivity. Zara is one of the most reputed brands in the retail industry of Spain. The organization came into existence in the year 1975 and is headquartered in Arteixo. After it’s the establishment, Zara expanded its business to domestic as well as international markets. Currently, there are over 10000 outlets and stores of the organization (Annual Report, 2018). It is found in the annual report of Zara that there were over 171000 employees in the company in the year 2017. This data indicates the need for effective human resource practices so that the commitment and productivity of the employees in Zara can be enhanced. This report is developed to evaluate how motivation is used by the HR department for influencing the level of commitment and productivity of employees in Zara. For this purpose, the report is describing employee motivation as an HR practice. Along with this, information illustrating the significance of commitment and productivity is also mentioned in the report. Not only this, motivational measures and their importance in Zara are also analysed in the report.

Employee motivation as an HR practice

Various studies carried out on human resource management indicate that employee motivation is an essential practice for organizations. Human resource managers in companies consider several approaches for motivating and encouraging employees so that their performance can be improved. Some of these motivational approaches in HR practices are explained in the following manner.

Approaches of extrinsic rewards as motivation: it is one of the best approaches, which is considered in organizations by the human resource managers for motivating employees. Extrinsic rewards are financial benefits, which can be provided to the employees (Truss et al., 2013). These may include raise in salary or remuneration, bonuses, gratuity rewards, financial allowances and help, and many others. It can be analysed that employees work in organizations to earn their livelihood. Therefore, financial rewards can motivate them to perform excellently.

Approaches of intrinsic rewards as motivation: It can be analysed in various studies that intrinsic rewards are also considered by human resource managers in organizations to motivate employees. Intrinsic rewards can be understood as the non-financial rewards such as enhancement in the hierarchical position of employees in the organization, performance appraisals and many others (Simon et al., 2015). It can be interpreted that the intrinsic rewards may have significant effects over the morale and enthusiasm of the employees, which ultimately improves their performances.

Verbal motivation: It is also another form of the motivational practice exhibited by human resource managers in organizations. Verbal motivation is an approach in which HR managers consider interacting with the employees and provoke them to become more productive (Kehoe and Wright, 2013). It can be analysed that verbal motivation can be helpful for the employees to perform extraordinarily within the company.

This way, it can be said that there are several approaches, which are practices by human resource managers to motivate employees at the workplace.

Significance of commitment and productivity of employees in terms of performance of the retail sector

There are several factors and benefits, which depict that higher commitment level and productivity of the employees, are necessary to shape growth pathways for Zara. These benefits are analysed in the following way.

Low absenteeism: One of the significant factors which justify the importance of employee commitment and productivity is low absenteeism. It is found that employees in Zara, which are known for their high commitment and productivity, hardly remain absent (Hackbarth, 2018). These employees have more contribution to workplace productivity than the employee, who are less committed to their work and productivity.

Long term retention: it is also found that there is a direct relationship between the level of commitment and retention of the employees in Zara. The study reveals that in the organization, employees who were found highly committed towards their work also retain for the long term (Gilmore and ‎ Williams, 2012). Therefore, HR managers are required to develop approaches through which the commitment and productivity of the employees can be enhanced.

Organizational growth: It is also an astounding benefit of higher commitment and productivity to Zara. High productivity and commitment of the employees allow the organization to set bigger targets and achieve them successfully.

It can be analysed from the above figure that in the past few years, there has been an increased turnover of Zara (Annual Report, 2018). The high commitment to its workforce and productivity are accountable for this growth.

High sales: High level of commitment and productivity from the employees’ end necessary for Zara for increasing its sales also. If, employees in marketing and sales in the organization will be committed towards their job roles and duties; then, they may execute more sales, which may ultimately benefit Zara in terms of high sales and performance.

The above figure helps to understand that in Europe, America, and Asia, Zara has increased its sales by depicting a keen focus on employee productivity and commitment (Annual Report, 2018).

Idea generation and innovation: It is another major benefit of employee commitment for Zara. Employees, which are highly committed towards their work, may provide more ideas for innovation (Harzing and ‎ Pinnington, 2014). These ideas can be adopted by the management in Zara, which may enhance its sales and finances.

This way, it can be said that commitment, and high productivity of the employees in Zara has significant effects over its performance and excellence in the business markets.

Motivation as a tool for driving the commitment and productivity of employees in the retail sector

Various studies carried out on organizations in the retail sector indicate that there are several approaches, which are considered by human resource managers in Zara to motivate its employee. Not only this but, it is also found that motivational practices adopted by the HR managers have significant effects over the commitment level and productivity of the employees. These practices and their impacts in Zara are analysed in the following manner.

Establishment of employee-centric policies: it is one of the best approaches practiced in Zara by the human resource managers to enhance motivate employees. The annual report 2017, published by the organization helps to understand that managers in Zara have developed policies for enhancing equality at the workplace and protecting employee rights (Crawshaw et al., 2017). Along with this, there are also strict protocols and codes of conducts for reducing employment discrimination and many other practices. These approaches in Zara are accountable for enhancing the morale of the employees due to which they think that the organization is concern about their wellbeing. As a result, employees get passively motivated towards their performance and responsibilities. Considering the impacts of these HR practices on the performance of Zara; it can be said employee centric policies set by the managers in the organization, enlighten the workplace atmosphere due to which employee become more productive. Not only had this but, high productivity of the employees also laid pathways to Zara to enhance the sales as well as revenues.

Reward system: As described earlier, the reward system is one of the most admired HR practice in Zara, which allows the employees to come more productive and committed. It is found in the study that HR managers in Zara have adopted both types of rewards systems for the employee, extrinsic and intrinsic (Ashkanasy et al., 2016). The organization provides many financial benefits, which include shopping, and meal cards, raise in salary, bonuses, incentives and many others. Along with this, it is also found in the studies that HR managers in Zara acknowledge the performances of the employees and appraise the best performing employees by providing rewards such as “Employee of the Month” and many others. These extrinsic and intrinsic reward systems considered in Zara is accountable for enhancing the commitment of the employees and making them more productive. Employees work even more to acquire higher rewards, which ultimately improves the productivity of the overall organization. This way, HR managers in Zara consider motivating the employees by developing an effective reward system.

Meetings and seminars: To motivate the employees and workforce, HR managers in Zara also consider the practices of meetings, seminars, and interaction. It is found in studies that HR managers in the organization establish monthly, quarterly and annual meetings in which employees are also included (Armstrong and ‎ Taylor, 2012). In these meeting, HR managers and executives encourage the employees towards performing more and describe how their commitment may bring financial benefits to organizations and themselves. Not only this but, Hr managers also consider approaches of interacting with the employees at a personal level. These approaches provoke employees to become more committed and performing. As a result, the higher productivity of the employees contributes to organizational success and excellence in Zara.

This way, it can be understood that there is a direct relationship between the motivational practices considered by HR managers in Zara and the commitment and productivity of the employees.

Understanding the current performance of the organization through HR practices of employee motivation (Zara)

Human resource managers in Zara have adopted several approaches and practices to motivate the employees. The annual report of the organization provides many examples of these approaches and their impacts over the performance of the organization in its business markets, which are analysed in the following way.

In the year 2017, HR managers in Zara developed and implemented Inditex Diversity and Inclusion policy at the workplace. In this policy, the organization recruited employees regardless of their nation of origin, race, class, gender and many other factors. These approaches were effective in diversifying the workplace atmosphere in Zara by bringing new talents from all parts of the world. As a result, there were increments in sales and turnover of the company in European, Asian and American business markets. In the year 2016, Zara made a turnover of 23.3 billion Euros, which further increased to 25.3 billion Euros in the year 2017 (Annual Report, 2018). This growth was mainly due to the policies that were set by the HR managers to motivate the employees and enhance their level of commitment and productivity.

Not only this, but it is also found in the annual report of the organization, that HR managers in Zara developed and implemented strict protocols for reducing workplace discrimination, gender pay gaps, and many others. These approaches were effective in encouraging female employees to become more concern about their job roles. It was observed that approaches of reducing gender pay gaps in the organization were considered as financial benefits by the female employee, which significantly improved their performance and commitment. Considering the financial structure of the Zara; it is found that in the year 2016, Net Financial Position of the organization was 6.1 billion Euros, which increased to 6.4 billion Euros in the year 2017 (Annual Report, 2018). This increase in the financial structure of Zara indicates that employees within the organization have become more productive and committed towards their responsibilities, which allowed the company to gain financial excellence.

Upon evaluating the employee related data of Zara, it is observed in the annual report 2017 that in comparison to 2016, the organization had more employees in the following year. There were over 162000 employees in Zara in 2016, which further increased to 171839 in the year 2017 (Annual Report, 2018). Similar observations can also be made for the previous years of operation for Zara. Increase the number of employees suggests that HR practices in Zara are highly effective in motivating the employees to work with the organization and acquire growth. Various policies and approaches considered in the company for motivating the employees have resulted in their long term relationships with Zara as well as their immense contribution in enhancing productivity and profitability.

This way, it can be analysed from the financial performance of Zara that the organization has significantly improved its profitability, turnover, number of employees and many others. Employee motivation practices by the HR department of Zara are accountable for providing this growth.

Recommendations

There are many recommendable measures and actions, which can be considered by HR managers in Zara to improve the organizational performance further by motivating employees. These recommendations are given in the following way.

Development of employee cycle: it is one of the best practices that can be exhibited by the human resource managers in the organization. The study reveals that organizations in which employee cycle is developed may have more productivity and commitment from employees end (Gilmore and ‎ Williams, 2012). For this reason, HR managers in Zara are required to set an employee cycle in which objectives, duties and other performance aspects are described. Not only this but, the managers also need to indicate the financial rewards, promotions and other benefits, which can be acquired by the employees if they will be highly productive. It can be said that employees in Zara may evaluate their future goals and associated benefits in the employee cycle, which will provoke them to become more committed. This way, Zara may improve productivity at the workplace and acquire intense growth and financial excellence in its business markets.

Performance-based system: Along with the development and implementation of the employee cycle, HR managers in Zara are also required to establish a performance-based system within the organization. In this system, HR managers are required to set rewards that can be acquired by the employees based on their performance level (Crawshaw et al., 2017). Along with this, different milestones for performance can be set in Zara, which will encourage the employee to become more committed and productive. It can be analysed that rewards acquired by best-performing employees, will also motivate other less performing employees in Zara.

This way, the employee cycle, and the performance-based system can be the motivational practices for HR managers in Zara to enhance commitment and productivity of employees.

Conclusion

It can be concluded from the above report that employee motivation is one of the significant HR practices, which may enhance the level of commitment and productivity of the workforce in an organization. HR managers in Zara consider many approaches and practices to motivate the employees. Some of these practices include effective rewards system in which financial and non-financial rewards are provided to the employees for their outstanding work and many others. Along with this, there is also a major role in practices such as verbal motivation, meeting, and seminars in improving the productivity of the employees in Zara. Further, in conclusions, it can also be said that different HR practices for motivating the employees in Zara have significantly improved the performance of the organization in its business markets. In comparison to 2016, there has been much enhancement in turnover, sales, and number of employees of Zara. This analysis helps to conclude that HR practices in Zara have been effective in enhancing the commitment of the employees as well as their productivity. Also, some recommendations can be given to Zara, which will help enhance the performance of the organization such as the development of effective employee cycle, performance-based system and many more.

References

Armstrong, M. and ‎ Taylor, S. (2012). Armstrong's Handbook of Human Resource Management Practice, UK: Kogan Page Publishers

Ashkanasy, N., Bennett, ‎R., and Martinko, M., (2016). Understanding the High-Performance Workplace: The Line Between Motivation and Abuse, UK: Routledge

Crawshaw, J., ‎ Budhwar, P. and Davis, ‎A., (2017). Human Resource Management: Strategic and International Perspectives, USA: SAGE

Furnham, ‎A. and MacRae, I. (2017). Motivation and Performance: A Guide to Motivating a Diverse Workforce. UK: Kogan Page Publishers

Gilmore, S. and ‎ Williams, S., (2012). Human Resource Management in a Business Context, UK: Kogan Page Publishers

Harzing, A. and ‎ Pinnington, A., (2014). International Human Resource Management, USA: SAGE

Kehoe, R.R. and Wright, P.M. (2013), The impact of high-performance human resource practices on employees’ attitudes and behaviors, Journal of Management, Vol. 39 No. 2, pp. 366-391.

Simon, L., Albrecht,B., Bakker, A., Gruman,H. and Macey, S. (2015),"Employee engagement, human resource management practices and competitive advantage", Journal of Organizational Effectiveness: People and Performance, Vol. 2 Iss 1 pp. 7 - 35

Truss, C., Shantz A., Soane, E., Alfes, K. and Delbridge, R. (2013), “Employee engagement, organisational performance and individual well-being: exploring the evidence, developing the theory”, The International Journal of Human Resource management, Vol. 24 No. 14, pp. 2657-2669.