The effect of different rewards on satisfaction at herbalife vietnam company

FOREIGN TRADE UNIVERSITY CAMPUS HO CHI MINH CITY ---------***--------- ASSIGNMENT Subject: English for specific purpose THE EFFECT OF DIFFERENT REWARDS ON SATISFACTION AT HERBALIFE VIETNAM COMPANY Group 5 Nguyễn Trường Thọ (MSSV: 1101017822) Nguyễn Lê Tiến (MSSV: 1101017839) Vũ Quang Vinh (MSSV: 1101017899) Lê Oai Vỹ (MSSV: 1101017919) Class: ML120 Teacher guide: Lê Văn Hòa Ho Chi Minh City, May 2013 CONTENTS 1. Summary Page 3 2. Introduction Page 3 3. Method Page 4 4. Results Page 4 5. Discussion Page 4 6. Conclusion Page 7 7. Recommendation Page 7 8. Reference Page 8 1. Summary The aim of this report is to investigate HERBALIFE staff attitudes to different methods of reward used by the company. A staff survey on attitudes towards four different methods of reward (bonus money, free vacations, gifts, commendation) was conducted. The result indicates that all the staff find rewards after finishing a project important to increase motivation and their working efficiency. The report concludes that bonus money or free vacations are two best ways to be applied. It is recommended that HERBALIFE has developed a company reward programme focusing on bonus money and free vacations to encourage the staff’s effort. 2. Introduction Staff rewards programmes have become increasingly crucial in the growth and development of any business. Indeed, employees are an integral part of a successful business. For this reason, many companies are devoting more resources to reward their staff and, consequently, foster customer satisfaction. In addition, reward programmes can be inexpensive yet clever ways to enhance staff loyalty and their performance. Whether it is  in the form of prepaid cards or gift vouchers, well-managed staff rewards programmes have several positive effects to the success of any business. A good staff reward programme often results in enhanced motivation among personnel. Additionally, it helps employees make connections between personal goals and professional goals. Motivation also increases the engagement of employees in the workplace and as a result, improves performance. Overall, employees who feel the support of their organisation derive value from their job and, consequently, enjoy a positive mental state. This translates to increased productivity from the employees and leads to increased profitability. HERBALIFE is a multi-level marketing company that sells nutrition, weight management and skin care products. The company distributes its products in 88 countries through a network of approximately 3.2 million independent distributors. HERBALIFE Vietnam, established in 2008, is a one of the biggest multi-level marketing companies in Vietnam. One of the most important factors that leads to the company worldwide success is its reward programme, including: 1. Bonus money (cash reward) 2. Free vacations 3. Gifts (valuable pens, vouchers, coupons..) 4. Commendation The purpose of the report is to find out the best reward method to be applied in HERBALIFE Vietnam Company. 3. Method This research was conducted by questionnaire with four choices to investigate HERBALIFE Vietnam staff members’ attitudes to four different methods of reward (bonus money, free vacations, gifts and commendation). A total of 200 copied - questionnaires were distributed at HERBALIFE Vietnam Company from 6/11/2013 to 6/13/2013. The data is primary data. After being collected, the data was analyzed according to statistics method by tables and graphs. No personal information was collected; the survey was voluntary and anonymous. 4. Results Not like Normal Like Strong like Bonus money 2 8 50 140 Free vacation 17 18 82 83 Gifts 54 86 29 31 Commendation 89 72 27 12 There was an 100% response rate to the questionnaire (200/200) survey sheets were collected). A breakdown of the responses is listed below. It can be clearly seen from the results that HERBALIFE Vietnam’s staffs are most favored method of reward is bonus money, then free vacations. Table for information collection Unit: Person As also seen from the result, gifts and commendation are accepted in some circumstances, but generally these methods are inefficient and received the least concerns. 5. Discussion According to the “graph 1” below, cash reward is the best method to satisfy the staff. 140 employees (70%) interviewed strongly like this method, 50 employees (25%) like this method and only 2 of 200 employees interviewed do not like this method of reward. The reason for this result is that money has the highest liquidity, it can be transformed into all kinds of goods and services. Employees after receiving cash reward can use the money for many different purposes, depending on their preferences. Graph for attitude toward bonus money Ranked second in the most-favored method is free vacations. 83 employees (42%) strongly like and 82 employees (41%) like this method. A vacation after a long stressful working time makes the staff more comfortable, therefore increase their working efficiency. A relaxing vacation also helps establish a better relationship between staff, and between company leaders and their staff. Graph for attitude toward free vacation There is only 30% (60 employees) of the staff like and strongly like being rewarded by gifts. However, dislike attitude toward this method amounted to 27% (54 employees) of the total staff surveyed. This can be easily explained as most of the gifts (pens, vouchers, coupons) are not high-valued and sometimes they do not meet the needs of the employees. Graph for attitude toward gifts Commendation is the least favored of all four methods. Only 34.5%  (49 employees) of the staff like and strongly like this method of reward, while the proportion of dislike is at 44.5% (89 employees). Merely commendation is considered as impractical while the material life is becoming increasingly important. Some staff even think this method a waste of time and the cause of envy between them. Graph for attitude toward commendation 6. Conclusion Graph for summary Bonus money is clearly the most favored and effective method of HERBALIFE Vietnam’s reward, and the next is free vacations and gifts. Commendation receives the least concern among the staff. 7. Recommendation It is recommended that HERBALIFE Vietnam develops a reward programme focusing on bonus money and free vacations. It is also recommended that the company should combine different methods of reward to gain the best efficiency. REFERENCE 1. Websites HERBALIFE Vietnam, Method of statistic, 2. Books English for specific purposes English - Students books 3. Appendix tables Table for information collection Page 4 Graph for attitude toward bonus money Page 5 Graph for attitude toward free vacation Page 5 Graph for attitude toward gifts Page 6 Graph for attitude toward commendation Page 6 Graph for summary Page 7 4. Questionnaire ATTITUDE TOWARD COMPANY’S REWARD Not like Normal Like Strong like Bonus money Free vacation Gifts Commendation (You can have the same attitude toward different methods of reward)