American Express: Relationship Care Strategy For Employee

Relationship Care Strategy

American Express has taken steps to provide employees with objectives that reward the employees with exemplarily service records. This type of compensation known as “pay for performance, ties incentives to customer satisfaction surveys” (Colquitt, LePine & Wesson, 2013). In terms of pay for performance, is this technique really any different than an annual performance review? Does compensation given at more frequent intervals promote higher motivation levels compared to an annual compensation? Many theories surrounding motivational behavior suggest that employee engagement defines the level of commitment and motivation of employees.

Pay for Performance Employees can be rewarded in many ways for exceptional

American Express is promoting this behavior by offering not only pay for performance incentives, but by also giving their front-line customer employees more control and flexibility. “American Express has supplemented its extrinsic rewards with some intrinsic ones. The company changed the agents titles from ‘customer care representative’ to ‘customer care professional’ and agents were also given more flexible scheduling” (Colquitt et al., 2013). With flexible work schedules, employers experience increased employee morale, engagement, and commitment to the

There are many motivational theories thought to be the key source of employee engagement. The expectancy theory of motivation ultimately suggests that human beings are driven to accomplish a goal not only because it is perceived as desirable, but also because the goal appears to be achievable. The goal setting theory of motivation suggests that goals need to be clear and measurable. The equity theory of motivation is “based on the idea that individuals are motivated by fairness, and if they identify inequities in the input/output ratios of themselves and their referent group, they will seek to adjust their input to reach their perceived equity” (Hawks, n.d.). Finally, psychological empowerment suggest that all employees have some basic needs that must first be satisfied in order to provide the framework for further motivation and empowerment. The pay for performance strategy used by American Express encompasses many of the motivational theories represented above. Most importantly, the expectancy theory, as this theory recognizes that employee behavior is directed toward a goal that is both desirable and