Employee empowerment has an undeniable positive effect both on organizations’ development and workers’ well-being. However, when planning a motivation approach within a company, one has to take into consideration the resources needed for the implementation of the idea. The present stage of the project incorporates a cost-benefit analysis for motivation through holistic fitness. Specifically, the costs involved in the process will be discussed, and the projected profitability will be assumed.
Analyzing the idea of motivating employees through holistic fitness incorporates the estimation of costs necessary for its introduction. Assuming that my company has fifteen employees, I can expect to spend about 500 dollars on each of the team members’ empowerment.
Thus, I will need to have $7,500 available for such expenditures. These costs will cover gym membership (physical fitness), meditation sessions (spiritual fitness), workshops with the participation of craftsmen and artists (emotional fitness), and the development of puzzles and riddles (mental fitness). Generally, the costs are necessary to provide my employees with holistic fitness opportunities to bring about the best in them. Although I will have to dedicate some financial and mental efforts to carry out the planned change, I expect to receive benefits from such activities in the long run.
Like any endeavor, my idea of holistic fitness has sunk and opportunity costs should be estimated. Sunk costs include the money that is spent never to be recovered. In the case of my project, such costs will include payments for various activities in which employees will participate. Also, the money given to trainers and artists invited to hold workshops will never return, so it will constitute another item on the sunk cost list. Meanwhile, opportunity costs are the benefits that I might lose when selecting the wrong alternative. For instance, if I invite a professional whose services are more expensive than those of others, I miss out on some money.
However, I will not cooperate with this person in the future, thereby saving money and not losing the opportunity costs. Typically, opportunity costs are not included in financial reports, but I will benefit from knowing about them.
Opportunity costs and projected profitability of the current project are considered crucial components of successful empowerment procedures. Research indicates that employee motivation can lead to substantial profit. Highly motivated workers perform their duties better, which allows predicting a long-term increase in projected profitability (Ganta, 2014). According to a Gallup study, organizations lose nearly $300 billion annually due to employee disengagement (Gaille, 2017).
Meanwhile, data provided by Hay Group indicate that motivated workers are 43% more productive than non-motivated ones (Gaille, 2017). Employees who are not empowered are likely to cause losses and reduce profitability opportunities. For instance, Deepa, Palaniswamy, and Kuppusamy (2014) report that poor performers cause a fall in the organization’s productivity. As a result, projected profitability will be rather low if workers do not receive the appropriate motivation. Since I will increase my team members’ motivation, I expect to receive at least a 20% increase in projected profitability within the first year of the holistic fitness program.
The introduction of any change can cause difficulties, both mental and financial. However, as the cost-benefit analysis shows, the implementation of an innovative motivation approach is likely to bring more advantages than disadvantages. Due to research data, motivated workers demonstrate better results and improve their companies’ achievements. Thus, even though I will spend some money on the idea, I will most likely benefit from it in the future.
References
Deepa, E., Palaniswamy, R., & Kuppusamy, S. (2014). Effect of performance appraisal system in organizational commitment, job satisfaction and productivity. The Journal Contemporary Management Research, 8(1), 72-82.
Gaille, B. (2017). 19 employee motivation statistics and trends. Web.
Ganta, V. C. (2014). Motivation in the workplace to improve the employee performance. International Journal of Engineering Technology, Management and Applied Sciences, 2(6), 221-230.