Employee Motivational Proposal

The essence of the reward system should always balance the interests of employees with
the firm’s interests. As a result, many businesses are doing more than merely trying out methods
to enhance them. The total effectiveness of a holistic remuneration package is determined by
how well it is designed and implemented to manage the many obstacles that arise during the
process. This paper aims to develop a proposal for Ace’s Automotive Company to adopt a pay-
for-performance and employee-of-the-month program. More than 500 employees work for the
organization in a variety of roles. Ace Automotive Inc. understands that the most important
aspect of the employment relationship is incentives. As a result, the company acknowledges the
need to offer its employees financial perks, recognition programs, and work-life balance.

The Need for the Proposal

Recruiting and retaining top talent is a major challenge. In addition to this, employee
turnover can be particularly high in the service sector, such as the automotive industry, due to
poor reward systems. HR professionals must also deal with the rise in total compensation
expenditures in relation to both short and long-term benefits. Ace Automotive Inc. requires a
robust compensation system that rewards personnel appropriately. Money and time off can be
used as forms of compensation. Furthermore, the corporation understands the importance of
personal recognition and career advancement for employees in any organization.

Proposed Reward Program

Compensation
Ace Automotive Inc. recognizes the value of equitable compensation in its industry. As a
result, we propose a variety of remuneration options that serve as retention incentives.
Performance pay is the most preferred reward system. The following factors will be assessed

using a merit-based checklist to guarantee that the deployed pay-for-performance scheme is
successful:
 Qualitative activities: Factors to be evaluated here will include Employee
Productivity, Customer Satisfaction, and Employee Engagement, among other
activities directly related to customer experience and outcomes (Abd Razak et al.,
2018).
 Quantitative activities: Factors to be evaluated here relates to the organization’s
operational side, such as programming, maintenance, accounting, and administration.
Work/Life Balance
The goal of a work-life balance program is to allow individuals to combine their personal
responsibilities with their professional responsibilities. According to research conducted in the
United States, more than half of workers are overwhelmed and are constantly looking for better
career prospects (Hanaysha & Majid, 2018). As a result, businesses should make an effort to
assist employees in achieving a healthy work-life balance. Workers should be satisfied and more
productive due to this initiative. Organizations should stress flexibility in this regard by offering
employees time off to accommodate irregular working hours caused by family obligations.

Employee recognition program

The Employee of the Month (EOM) award should be determined by his coworkers. This
is due to the fact that only then would employees operate competitively. For this program to be
effective, all employees’ work must be constantly evaluated by the department head during
particular times of the month, and results announced during the award ceremony. Along with a
small cash incentive, a well-crafted, framed letter of credit, commemorative plaque, or other
physical gifts should be offered, making the exercise highly popular among coworkers. Because

every employee wants to be awarded Employee of the Month for their hard work, the effective
usage of these special recognition awards will result in increased productivity and deeper
involvement (Paais & Pattiruhu, 2020).
A points system must be uniquely defined for each achievement done by the EOM for
this program to be successful. Also, all contenders must ensure that they are evaluated by a
diverse group of peers. If all of these reviews demonstrate that an employee is underperforming
in one area, they should be given feedback to help them improve.

How to get started with this month’s employee program
Organizations can utilize the following suggested procedures to implement the
proposed Employee of the Month program as a recognition tool:
1st step: Ascertain that all employees are aware of the program’s eligibility requirements.
Determine how long an employee must perform to be considered for Employee of the Month.
2nd Step: Make a date for announcing the employee of the month each month based on
performance evaluated data.
3rd step: Disclose the top three to five benefits that Employee of the month will receive every
month.
Step 4: Declare the Employees of the Month Award winner. Detail fact sheets for employees and
newsletters for the company.
Conclusion
Employee motivation has been demonstrated to be an important factor in the activation of
business HR. Organizations must incentivize their employees to increase productivity, and one
way to do so is through a performance-based system and Employee of the Month program.
Employees’ social and emotional needs are met through the EOM program, which motivates

them to work more. It is a terrific way to boost employee morale in any company, big or small.
Everyone enjoys being praised for their work, and a well-designed recognition program may
boost employee productivity, innovation, and job happiness.