Motivating Employees in a Post-Covid-19 World: A Tesco Case Study

Dissertation

BM634

Topic: Motivating employees in a Post Covid-19:

Study Case: Tesco- North London

Author: Svetlana Petrova

Student ID: 21801217

Introduction

The emergence of COVID-19 has brought many changes which are proving to be challenging for the organisations where employee motivation is also among them. The outbreak of the COVID-19 resulted in major changes like shifting to work from remote locations, anxiety, and fear among the employees which are impacting the performance of the employee and hence the performance of the organisation. Therefore there is a need of keeping the workforce motivated to confront these challenges. In this context, the work focuses on studying the challenges and possible solutions of employee motivation post-COVID-19 with reference to employee motivation approaches and strategies of Tesco. Tesco is an organisation that is effectively using the motivation strategies for the motivation of the employees which makes the study of this case study more effective for the work. Under this, the role and impact of employee motivation are discussed with the insights from the approaches used by Tesco.

Background of study

Motivation can be defined as the procedure which describes the strength, persistence, and direction of an individual for achieving the goals. This is the process where the person is required to be encouraged for carrying out the activities and leading to the achievement of goals. Motivation and direction are considered essential skills for the alignment of organisation and employee interest which can result in the behavior of employee achievement with the organisational objectives (Wiradendi Wolor et al., 2020). According to the work of Wolor et al. (2020), the Covid-19 virus has made the employees work from their homes as well as if they are working in the office there is the requirement of wearing masks, hand sanitizer policies, and social distancing for the purpose of protection. The anxiety related to this outbreak has impacted the motivation of the employees in a negative manner which has impacted the negative emotion level which arises and makes the maintenance of the employee performance challenges.

TESCO is a British company which has thought about employee motivation carefully. This company is involved in the creation of a fulfilling environment of the work where every employee on the plan of personal development has defined communication lines. This is one of the motivators which is utilised by TESCO for work experience satisfaction. Another such initiative of Tesco can be seen from the employee skills development programs, job rotation, and retail chain which are provides strategic importance for the quality performance of the employee across the retail chain (Fadeyi, 2020).

Rationale

The development of the well-structured system of motivation is significant for the organisation for the retention of talent as well as for the enablement of employees in the production of maximum advantages for the company. The motivation system of an organisation has a direct impact on the efficiency of the employees, job satisfaction, and morale. Besides the developed system of motivation, the improvement in the satisfaction of the job of employees has a positive organisational performance influence (Pang and Lu, 2018). In the current work environment, there has been an increase in employee motivation where this has become the norm of human resources (HR). There are a number of organisations that are trying the development, maintenance, and improvement of HR strategies for the motivation of the employee. The researches in recent years have represented the increase in the roles of the personal variables on human motivation (Çetin and A?kun, 2018). The COVID-19 pandemic has resulted in several employees confronting the stress from the risk of health to work from home. Altogether there are several managers who are leading the remote teams which is a new experience for them. These sudden changes have to led to collaborating challenges and distance-leading challenges (Caligiuri et al., 2020). People are considered the most crucial asset of Tesco. The success of the business relies on the contribution and the performance of every individual colleague however the outstanding performance of the company arises from the teamwork and reward objectives where for the motivation of employees colleagues are given incentives for delivering the business objectives (tescoplc.com, n.d.). Hence it can be seen that employee motivation has become the crucial factor after the emergence of COVID-19 where Tesco has successfully utilised the motivation initiatives to keep its employees motivated. The major benefit of this work is to the human resource department of the retail companies who are responsible for the motivation of the employees. Besides this, the individuals who want to get awareness about the employee motivation challenges and strategies can also be benefitted.

Problem identified /statement

According to the work, there is a requirement of focusing on the employee motivation factors in the phase of the COVID-19 pandemic which is challenging (Al-Alawi et al., 2021). Hence it can be stated that the outbreak of pandemic has made the motivation of employee more challenging which need to be addressed through appropriate strategies for the effective performance of the organisation.

Research of Aim

The major aim of this work is to identify the challenges and evidence-based ways for the improvement of employee motivation post-Covid-19 with reference to the case study of Tesco for making the HR process effective.

Objective

• To identify the impact of Covid -19 on the motivation of employees.

• To explore the role of employee motivation in determining organisational performance after the emergence of Covid-19

• To explore and assess Tesco’s performance in motivating its employees after Covid-19.

• To recommend a set of relevant and evidence-based suggestions for improvement of employee motivation after the COVID-19 outbreak.

Research question

• What is the impact of Covid -19 on the motivation of employees?

• What is the role of employee motivation in determining organisational performance after the emergence of Covid-19?

• Explore and assess Tesco’s performance in motivating its employees after Covid-19?

• Recommend a set of relevant and evidence-based suggestions for improvement of employee motivation after the COVID-19 outbreak?

Literature Review

This section provides a review of the literature which have been developed in the field of employee motivation after covid-19 with reference to Tesco. Under this, the employee motivation is connected to the covid-19 and how it has impacted the overall performance of the organisation. This involves the arrangement of the subheading of the review in the manner starting from the basic definition of employee motivation leading to the application of employee motivation strategies undertaken by Tesco and the identification of the gap in the research related to the topic on which this work is focused.

Employee Motivation

Motivation is significant for the employees for the performance of work according to the operational standards of the company. Motivation can be defined as the power which allows an individual to act in the direction for the achievement of a specific goal. There is a positive relationship between performance and motivation. Motivation can also be explained as the autonomy support existence where the managers of an organisation focus on each and every decision which results in the employee's welfare. The employees who are motivated are focused on freedom and autonomy which leads to opportunities for development that ultimately benefits them (Paais and Pattiruhu, 2020). Employee motivations are of two types that is extrinsic motivation and intrinsic motivation. Under this intrinsic motivation is associated with the satisfaction of the personal need which can be seen in acceleration, recognition, achievement, personal growth, and responsibility. On the other hand, extrinsic motivation is associated with factors that are not related to the personal needs of the employee. These include company policy, work conditions, security, status, interpersonal relationships, and compensation (Paais and Pattiruhu, 2020).

The motivation of employees at the industrial enterprise is considered as one of the significant modern management principles. The practice of commercial and production activities of the domestic enterprises represents the required modifications in the methods for the identification of employee motivation approaches. The maintenance of the required productivity level and employee functional efficiency, as well as the enhancement in the work efficiency, is based on the sensitivity and perception of individuals towards the motivational factors and measures proposed by the organisation. The development of the tools for the assessment of the effectiveness of motivational measures and its influence on the achievement of employee productivity on a systematic basis helps the modern organisation management to manage the human resources effectively, maintaining the profitability level at the desirable and acceptable level (Pererva et al., 2018). Hence it can be said that employee motivation leads to the improved performance of the employees where the motivation can be financial and non-financial based on the internal needs of the employees and the factors which can influence the employees for work harder.

Impact of COVID-19 on Employee Motivation

In the current situation, the entire world is confronting the concerns over covid-19 virus spread. In the middle of the COVID-19 outbreak, there are several workers who are working from home, isolated and are closed based on the local government directions for the reduction of virus spread. There are companies that have continued their operations with virtual shifts for maintaining the income flow. This has become a challenge for the organisation to confront the coronavirus pandemic for the maintenance of employee motivation at the workplace. Anxiety regarding the outbreak of the disease has impacted the motivation of the employee in a negative manner where the emotions of the employees are negatively affected and there are difficulties in the maintenance of the employee performance (Wolor et al., 2020). Due to COVID-19, there have been several regions that are isolated and have a dangerous influence on the economy. This has made people shift towards online modes of working. Hence to keep these employees productive and for the maintenance of their performance motivation is required (Wiradendi et al., 2020).

The majority of the companies have focused on the operational reactions and the scenario planning for guaranteeing the business congruity during the Covid-19 pandemic across the world. There is a huge impact of Covid-19 which can be seen on the work lives and the private lives of the employees in the prompting the employee burnout, frustration, and anxiety. When these things are not attended the emotions can impact the employee performance and employee engagement leading to poor quality of work and mistakes were in long term these impact the capacity of the company in surviving on occasions that are troublesome (Adhitama and Riyanto, 2020). The covid-19 global crisis changes the job insecurity perception inevitably and gave high-level insecurities because of the prediction inabilities for the crisis strength and duration. The past research has shown that there is a negative association between job satisfaction and job insecurity as well as motivation which results in undesirable employee responses and behaviour. The job insecurities have accelerated and promoted the intentions of turnover as the employees considered it as the most appropriate approach towards dealing with stress which is caused by the thinking of keeping up with the job. The turnover intentions and the job insecurities are positively linked which highlights that the more employee will think of job insecurities the more chances are there for leaving the job (Bajrami et al., 2021). Here it can be seen that covid-19 has severely impacted the working conditions of the organisation where the companies have shifted their operations to the online working environment where the motivational needs of the employees are different. Besides this, the stress and anxiety created by this pandemic have also changed the motivational needs of the workforce requiring new and enhanced motivational strategies.

Impact of Employee Motivation on Organisational Performance

As per the work of Ozkeser (2019), the competitive advantages and the long-term success of the enterprise relies on giving significance to the humans as there are several resources that are owned by the organisation and can be imitated easily however there is one resource that cannot be imitated that is human resource. Hence it is important that the human resources of the organisation are performing the activities voluntarily. It can also be said that the individual motivation to work is the crucial factor for the success of the organisation. Similarly, the work of Lorincová et al. (2019) states that the performance of an employee, new ideas, and their efforts promotes the organisation in a positive manner which assists the company in the development of values as well as the failure or success of the business impacted by the productivity of the employees. The productivity of employees is further impacted by the employee motivation which is a purposeful and complex procedure for the creation of the working atmosphere and environment which assists in the aspirations satisfaction, employee interest, satisfaction of the employee needs and stimulates the actions of the employees in the most appropriate way.

It is the responsibility of the manager to make sure that the employees of the company are motivated in the way that the goals of the organisations are met for the achievement of competitive benefit which can overtop the advantages given to the competitors. The private organisations, as well as the public organisations, require the employees to remain motivated for the efficient and effective achievements of the several duties and tasks. The employees who are motivated work with full enthusiasm for the accomplishment of the goals of the organisation. In the context of motivation, the first thing which comes up in the mind is incentives. The incentives trigger consideration from the starting of searching the qualified employees who are capable of achievement of efficient and effective organisational goals. On the other hand, there are several organisations that are considering the utilisations of non-financial incentives which are valuable in terms of money (Agbenyegah, 2019). It can be stated that employee motivation has an indirect impact on the organisational performance where the demotivated employee will lead to decreased productivity and creativity resulting in making the organisational goals harder to achieve. Hence for the enhancement of the organisational performance, there is a need of keeping the employees motivated to achieve higher outcomes.

Employee Motivation strategies after Covid-19 for enhancing organisational performance

According to Azizi et al., (2021) the development, promotion, and participation of employee motivation can be done through the establishment of continuous communication channels through the use of innovative methods. These innovative methods involved the creation of formal communication groups on social platforms like WhatsApp and continuous communication between the employee and the manager. The group SMS services can also be used for messaging the employees of the organisation. Development of motivational slogans and the creation of cloud platforms that can be downloaded through mobile phones for communicating the content updated by the CEO of the company. Continuous communication with the senior managers of the company for the management of work from home to get the employee familiar with the work environment. On the other hand, the work of Dirani et al. (2020) states that leaders can provide encouragement to the supervisors for frequent engagement and for motivation boosting of the employees. The employees are confronting challenges due to the new work environment in the pandemic. This is crucial for the business supervisors and the leaders for becoming more flexible and adjust to the new conditions. The support of the supervisors can assist the leaders in the enhancement of employee retention. This benefit can positively influence the organisation's performance during the crisis as well as after the crisis. Crisis communication which is considered an integral component of crisis management can be defined as the frequent and candid communication with the employees regarding the current business state. Hearing from the team leaders on a continuous basis and taking information on the well-being of the employees is the significant responsibility of a leader.

The work of Wiradendi et al. (2020) found out that work-life balance, e-leadership, and e-training have a significant positive impact on work motivation. Besides this, the work also identified that work motivation, work-life balance, e-leadership, and e-training have a positive impact on the performance of the employee. The results also indicate that organisations should pay attention to the work-life balance, e-leadership and e-training factors for keeping the employees of the organisation motivated as well as for maintaining optimal performance of employees specifically during the time of the Covid-19 pandemic where employees are working online. Hence it can be said that after the emergence of Covid-19 there has been a shift in the employee motivation strategies from offline to online as the staff of the organisations is involved more in the online communication channels. The majority of the articles on employee motivation after covid-19 are focused on the digital modes of motivation while none of these specifies the reason for the increased motivation through these platforms which can be traced through the theories of motivation.

Employee Motivation Theories

There is one motivation theory developed by Herzberg that is the Two Factor Theory which is known as Theory X and Theory Y. As per theory X there is a number of factors that should be provided by the organisation however these factors are not recognized as the factors which can result in motivation or the satisfaction of the employees. The factors involve salaries, good working conditions, organisational policies and structure, interaction with colleagues, and quality. These factors are categorized as dissatisfiers as when these are provided these are considered as familiar to the employees. On the other hand, theory Y is considered as the motivational factor which a company can give and lead to job satisfaction. There are certain factors that the current organisation can incorporate involving job recognition and the programs through which the education of the employees can be advanced, fitness facilities, creation of workshops, and counseling services. Another theory is Maslow’s theory of need which is classified into the five-level hierarchy that are physiological needs, safety, belongingness, esteem needs, and self-actualization needs. This needs hierarchy can be used by the organisation for ensuring that the self-actualization needs of the employees can be achieved (Kang, 2020). The Theory of Equity was introduced by J. Stacey Adams which is developed on the basic assumption that organisational people are required to be treated fairly and is formed on the basis of employee perception regarding how the employees are treated. Equality can be defined as equity whereas with regards to the workplace it is defined as perceived employee equality as per ways of their treatment and the rewards deserved by them. The employees predict their own results in connection with the organisational contribution and compare it with the contribution and outcome relationship (Aleksi?-Glišovi? et al., 2019).

The work of Ali and Anwar (2021) states that wages contribute the crucial element of rewards for employee work. It is considered as one of the major stimulating and motivating factors. In case of appropriate management of wages, the system can enhance employee satisfaction, productivity, and motivation. Besides this incentive also have a crucial role in the productivity of the employee. Through this, the employee's attention can be attracted more specifically when it is related to the hiring of skilled employees who can involve in the achievement of the goals of the organisation. The compensation programs are also introduced for the motivation, attraction, rewarding, and retention of the workforce. In contrast, the work of Wang et al. (2021) explained the ERG theory which was developed by Clayton P. Alderfer in the year 1969. The theory is the revision of Maslow’s hierarchy of needs where it has divided the needs into three major domains are Existence, relatedness, and growth. The Existence is concerned with the basic life, relatedness is associated with the interpersonal requirements for mutual respect, and trust and growth are linked to the achievement of self-value through the productivity and creativity of an individual. This theory has been adopted in many professional fields of career motivation. The ERG theory has been used widely in the workplace for the analysis of the job performance of the employee (Wang et al., 2021). Hence there is a number of motivational theories which are been developed from the time when the focus of the theories are on some particular aspects while the categorization of this has been done differently in all the studies. This clearly states that there are some common factors behind the motivation of the individual which is related to the needs of the employees.

Need of Employee motivation in Supermarkets Post COVID-19

The employees of grocery stores are identified to be at a higher risk for the development of COVID-19 infection. The factors which enhance the risk involve high volume customers encounter and the loss of control over the social distancing policies. There is one recent research that has identified that 20% of workers of the grocery stores are tested positive for the virus (Gaitens et al., 2021). There is a larger percentage that is 76% of the workers who were asymptomatic. The psychological influence of the COVID-19 has been reported to be crucially higher in the employees of the grocery store in comparison to the general population. The worries of these employees about getting the infection during work and infecting their close ones were higher in comparison to the healthcare workers. Besides this, the workers who communicated with the customers had a 5 times higher risk of testing positive for the infection. The inability in social distancing identified the higher rates of depression and anxiety. This states that the essential “front-line” workers have the risk of crucial health issues linked to work stress (Gaitens et al., 2021). There is an increased risk of potentially morally injurious events (PMIEs) among the essential workers involving grocery store workers. According to the experience of one of the grocery workers, the work gave them the feeling of a war zone (Borges et al., 2020). These studies represented the factors behind the increased need for employee motivation in the supermarket where the impact of the covid-19 on mental health and the views towards the work is highlighted. These do not define a robust approach through which these challenges confronted by the workers in supermarkets can be overcome.

Similarly, the work of May et al. (2021) highlighted one of the case studies of supermarket employees of the UK where it is stated that inadequate PPE (Personal Protective Equipment), the behaviour of customers, and absence of the policies regarding the workplace mitigation resulted in COVID-19 transmission fear. There the number of keyworkers of the supermarkets confronted different occupational vulnerabilities which are not being recognized in the debate on the psychological distress and the essential work during COVID-19. The enhanced risk of COVID-19 has a significant impact on the well-being and mental health due to the perception regarding the negative outcomes of the infection (May et al., 2021). This study focused more on the psychological aspects of the supermarket workers who are influenced by the COVID-19 pandemic.

Employee motivation practices in Supermarkets

There are pieces of literature that have recommended that positive internal CSR (Corporate Social Responsibility) practices can impact the engagement of the employee, enhance the intrinsic motivations as well as improve the loyalty of the firm. In certain conditions, loyalty is aligned with the feeling of belongingness and self-identity in the workplace (Potdar et al., 2021). However, the association between the ownership feeling and the employer asset leading to guardianship behaviour is not explored in detail. In the context of the organisation, the association sense with the socially responsible organisation can offer psychological distinctiveness regarding the employment practices and organisational values and enhance the motivation of an employee. This increased motivation leads to increased engagement of employees. Besides this, the CSR activities which are oriented towards the employees enhance the climate of organisation work resulting in higher employee engagement (Potdar et al., 2021). This work highlighted the major strategies of employee motivation used in the supermarkets as well as the gap in the strategies of the supermarkets where these markets are lacking in using guardianship behaviour for the motivation of the employee.

Another work of Cubillo (2020), stated that contingent rewards can help in increasing the motivation of supermarket workers. Through this positive reinforcement can be provided for the work done well. This results in increased energy from the side of employees. This kind of reward is aimed at the achievement of the goals identified by the organisation. Besides this, the wok also identified that the intrinsic motivation factors and the promotion are crucial elements of job satisfaction. Those employees who experience job satisfaction generate a healthy attitude for the organisation as well as encourage other employees as well for elevate the work level. This motivational theory in supermarkets is linked to the combination of monetary as well as nonmonetary strategies of motivation.

Tesco’s Performance in employee motivation after Covid-19

The focus of Tesco has always been on raising awareness, motivating and inspiring colleagues to take care of their wellbeing. The program of the organisation is developed on the pillars of mental wellbeing, physical wellbeing, and nutrition and have also been underpinned by self-care and prevention to the structured support. The overall focus of the company is on the creation of leading the workplace health program which each colleague can reach. This is to support and empower their well-being. The company is working with several partners who can assist in shaping the program and providing the expertise (tescoplc.com, n.d.). During the year 2020/21, Board composition and succession planning developed a committee which was aimed at the formulation of board succession plans over the medium and short term and the executive committee succession pipeline with the senior management roles. This involved the internal talent review and the establishment of the bespoke development plans for the colleagues of high potential and for ensuring that the talent of Tesco can be retained and motivated for the future requirements of the business (Tescoplc.com, 2021).

In the November month of 2020 Tesco which is a supermarket chain announced that it is providing the employees a one-off bonus for the defense efforts of the employees during COVID-19 as well as the temporary initiative was also included in the second wave of covid-19 where the overnights shifts are introduced for restocking. The focus of this initiative was the elimination of the influence of Covid-19 and the reduction of the risk of the infection. For many years the company has not worked during the overnight shifts which were only for the protection of the customers and employees as the major purpose (static.eurofound.europa.eu, 2020). Tesco Ireland is providing a bonus of 10% to the employees of the organisation who are working around the distribution centres and the stores for the recognition of the employee efforts in confronting the increase in the supplies dries in the Covid-19 pandemic. These bonuses are accumulated through the hourly pay of the employees. This initiative of Tesco towards bonus payment is not considered as the crucial bigger scheme however it is recognized as long-overdue recognition and well-deserved recognition for the employees who are not recognized in the sector for the efforts they have put in providing the essential public services in the society (Pratt, 2020). Hence it can be stated that Tesco has focused more on the monetary aspect of the motivation where lesser efforts are made towards the wellbeing of the employees and supporting the employees in their online and offline work practices. However, the motivational strategies of the company can be justified on the basis of the work requirements where the company employees were involved in the physical work where the work of supermarket restocking and other operations cannot be performed online. This also highlights that the motivational strategies which are efficient for one organisation may not be effective for the organisation working in another sector.

Research Gap

The work of Sapta et al. (2021) is focused on employee motivation after the emergence of Covid-19. However, this study is focused on the banking sector and the motivational factors related to the employees of the bank. On the other hand, the work of Mefi and Asoba (2021) states that there has been less attention which is given to employee development and motivation during the crisis. The covid-19 is also regarded as the crisis which involved upkeeping with the employee wellness and health and the desire of the organisation for the maintenance of the minimum level of performance. During this, the employees also confronted the challenges in the motivation of the employees for the virtual and physical performance (Mefi and Asoba, 2021). Furthermore, the teleworking and remote working adoption have resulted in increased challenges regarding the motivation of the employees working from home. Here the literature gaps can be clearly identified where there has been a lack of research on employee motivation after the emergence of covid-19 and more specifically in the retail sector while there is a need for research in this area.

The human resource of an organisation is positioned uniquely for enabling pluralist perspective through the representation of the likely advantages for high-level alignment between the motivated employees and the employee and organisational goals. This leads to the creation of sustainable organisations which can provide greater returns to the stakeholders (Collings et al., 2021). Hence there is the requirement of recognizing the relationship between these two aspects which is aimed to be achieved through this work

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