The expenditure of retaining employees can vary. Methods for increasing staff loyalty can range from the low cost, like rewarding out long service awards after 20 or 30 years with a particular firm, to more expensive rewards such as offering employees attractive benefits package throughout their career.
The organisation that this particular blog refers to is T-Mobile. As the UK’s fourth-largest mobile phone network operator based on revenue, T-Mobile is holding its own in what is a fast-paced competitive marketplace.
As part of T-Mobile’s efforts to outshine its rivals, such as Orange, Vodafone and O2, the network is focusing on delivering excellent customer service. Reward manager Robert Cross believes that a competitive benefits package will play a crucial part in achieving this by helping to engage and motivate staff.
Robert Cross believes that by giving a greater emphasis to reward in the UK, T-Mobile will not only be able to make a difference to customer service levels but also achieve its aim of securing a place in the Sunday Times’ Best Companies to Work For list in 2010
Pension
Defined benefit scheme, which is available to all employees and new joiners.
Healthcare and wellbeing
· Private medical insurance available to all employees through flexible benefits. Employees can choose whether or not to add their spouse. Dental cash plan.
· Employee assistance programme.
· Subsidised gym membership.
· Health assessments. Car Company car and cash allowance, provided to all employees with a business need and higher-grade staff. Family-friendly policies
· Flexible working arrangements offered on an ad-hoc basis
· Parental and maternity leave.
· Childcare vouchers. Holidays Staff is entitled to 25 days a year, with the option of trading up or down by five days. Canteen/catering Cashless canteen offered through salary sacrifice arrangement
Discounted products
· Half-price T-Mobile line rental for employees and their friends and relatives.
Bonus
· Quarterly bonus scheme.
· Performance-related pay.
T-Mobile employees are offered a commission structure which is sourced from two sides. The first area is the sales, where every successful sale will increase the commission figure overall each month. The amount is totally dependent on the kind of sales that are processed. For example any contract that is more than £25 a month adds £5 to the commission paid to the employee.
The commission scheme differs from group to group. Normal sales assistant will benefit from the standard commission scheme, where the store managers are given a bonus as a percentage. If an individual store meets all targets set, then the store manager also receives a bonus of up to 25%. This bonus keeps managers focused; on making sure each employee is performing on best of his/her ability and creates more of a focus to the store.
“Managers need to meet both the organisation’s strategic goals and satisfy the needs of employees – a fine and difficult balance”
T-Mobile also offers an excellent retirement scheme package for its employees. Every month employees are able to contribute a small sum from their wages which in return offer a long term benefit. Healthcare benefits are another reward for as part of the integration of T-Mobile’s healthcare benefits, including its occupational health services, employee assistance programmes (EAP) and private medical insurance (PMI).
Its main aim is to get the three providers of these benefits to liaise and offer staff a more seamless service. The onus will be on the service provider to point an employee toward other healthcare perks, if appropriate.
Fairness is ensured by keeping track and records of each employee
Chief executive is (usually) the singular organizational position that is primarily responsible to carry out the strategic plans and policies as established by the board of directors. If a business is underperforming then the problem may be that the strategy developed by the chief executive isn’t effective enough. If a business fails to meet its targets then the bonuses given to chief executives should either be stopped or decreased.
This is because if staff are under performing and and the business is under performing, it is a clear indication that the staff need to be trained thoroughly. This could be in two ways either the chief executive needs to develop new ways to train staff or money spent on a bonus should be spent to train staff. Or equally buy better resources for the business which would be a long term investment rather than in the pocket of the chief executive. It is also de-motivating for the staff as they would be under achieving and getting in trouble for this yet their "boss" would be getting bonuses.
Performance related pay relates all staff to higher motivation, commitment to the staff and reinforce cultures and values. It can be argued that if the chief executive can make this money that the staff should receive this too?.
Though it can also be argued that if the staff are under performing that appropriate measures need to be put in place to ensure the company does well, but this should not effect the Chief executives pay. It is the job of the staff to work hard therefore bonuses should not be cut as they are not the sole everyday workers on the business.
http://www.youtube.com/watch?v=Ok2-7fWwmQI
This video shows bosses in 2007 receiving big bonuses even during struggle.
References
- Lecture notes week 23
- Unknown. Staff loyalty- why should it be rewarded and if so how? [Online].Available from:http://www.love2reward.co.uk/rewards/solution-finder/staff-loyalty.jsp [Accessed on 11 May 2011]






