Motivation of employees: Häagen-Dazs and Ben & Jerry’s

This report provides analysis and research on motivation of employees working in Haagen-dazs and Ben Jerry. It is to find out why in today’s business many employees in some companies no longer pay attention to the quality of their work. Method of analysis used for this report is by compare two companies which involved in the same area of business. It is necessary to investigate how they motivate their employees in order to keep their employee’s loyalty and make sure they perform their best. This report is made to provide information based on the motivation factors that could affect the employee’s performance level in a company.

Employees in some companies operating today are not really performing well in the market. Some of them just do the job in what way they want which caused the company no longer has a lot of loyal customer and of course the companies’ profit will decrease. For this situation to be stopped, managers of the companies have to bring their employees to a situation whereby it is profitable and worthy for both employees and company. One of many ways to “turn on” the employees in the company is motivating themselves to do their very best although the manager is not around. As known, leadership styles of a company influence the level of motivation.

Motivation is simply defined as what gets you started the drives that move yourself to do what you do. Motivation will lead to a state willingness of putting high effort in achieving organization goals.

It is the desire, the passion that makes a human movement. Motivation is related with human psychology which shows the human attitudes, needs, and satisfaction inside human themselves, while other encourage factor from outside human caused by their leader such as manager or supervisor. So, employee’s motivation is influenced by the changing ambitions or leadership style he works under or socializes with. Motivation talks about how to instruct the power and potential of subordinates, to cooperate together so the company can achieves the goals, vision and mission optimally.

To analyse how managers motivate their employees in today’s company, this report will compare ice cream companies which are Häagen-Dazs and Ben Jerry which have similar business environment.

Case study of Häagen-Dazs

2.1 Historical background of Häagen-Dazs Company

As known, Häagen-Dazs is one of the most famous super premium ice cream in the world. Surprisingly although it has high butterfat content which is not good for health, it is reported that Häagen-Dazs has higher sales than the other ice cream market segments. The history of Häagen-Dazs starts from the year 1920’s. Ruben Mattus, a young entrepreneur with the ambition of high quality of ice cream and his vision to create the finest ice cream in the world. To produce the finest ice cream available, he insisted on using only the finest and purest ingredients. In 1960, Mr Mattus, supported by his wife decided to form a new company which is dedicated to his ice cream’s vision. He called his new brand Häagen-Dazs. (Haagen-dazs, 2008).

Häagen-Dazs convey the aura of the old-world tradition and craftsmanship and started out with only three flavors: vanilla, chocolate and coffee. At first, Häagen-Dazs was only available in New York City. In 1976, Mr. Mattus’s daughter opened the first Häagen-Dazs shop. It became success and caused the expanded of the shop across the country. In 1983 Mr. Mattus agreed to sell Häagen-Dazs to The Pillsbury Company under the agreement that remained to the tradition of superior quality and innovation as the original Häagen-Dazs. In the year 2001, general mills bought Pillsbury and owned the Häagen-Dazs (Haagen-dazs, 2008). In the United State, General Mills sold Häagen-Dazs under the Nestle licensing brand (Mahalo, 2010). Today, Häagen-Dazs can be found in over 900 Häagen-Dazs Shops in 50 countries around the world. Häagen-Dazs successfully reached their goals and target and start the “me generation” (Haagen-dazs, 2008).

The motivation used by Häagen-Dazs

Reward from collecting point

Häagen-Dazs use the program called ‘Star’. This is an online employee reward and recognition program, which operated through a system of point. So the employees are rewarded based on their ability to achieve their monthly sales and the “mystery shopping targets” of the company. The point that they already have can be redeemed for gifts with the term that they must have worked for a minimum of three months. They also can collect their point first to claim more substantial gift. (allinhr, 2010)

Thank you Card

For the three top employees for exceeding expectation, company gives them award which takes the form of a Thank You card which says “thank you” in over 70 languages and has blank space which allow managers to personalize the card recognition. This certificated are displayed in the prominent place in the shop to improve the quality of work.

Performance Chart

Other motivation element in this company is that they have a performance chart which displayed on the staff notice board. There, employees can check the weekly and monthly sales of the company, which is colorful and easy to understand, includes the weekly motivational message from the manager complete with tips on how to improve the employee’s performance. (allinhr, 2010)

Benefits

As an employee in this company, on the top of competitive pay rates, you will also receive discount when buy ice cream. Full-time workers even get benefits packages such as healthcare coverage, and insurance (Job-application, 2010).

Another benefits including saving plans advice, annual bonuses, vacation, summer hours, holiday, and flexible work arrangements. This company also offers an educational assistance for employees and family members. (Generalmills, 2011).

Supporting environment

As the owner of Häagen-Dazs, General Mills provides seven diversity networks where employees can participate to exchange their ideas and information on a positive level. (Generalmills, 2011)

Case study of Ben Jerry’s

3.1 Historical background of Ben Jerry’s Company

Although the most popular flavour in the U.S. is vanilla, there also have people who like to try something new. Because of such thought, Ben & Jerry’s came out with funky flavours like Cherry Garcia, Chunky Monkey and a groovy Vermont vibe.

With a $12,000 investment ($4,000 of it borrowed), Ben Cohen and Jerry, a childhood friends, opened their Ben & Jerry’s Homemade ice cream scoop at the corner of St. Paul and College Streets in downtown Burlington, Vermont, on 5 May 1978. (Benjerry, 2011).

Jerry and Ben at first were thought about making bagel cakes, but due to the expensive equipment, they changed it to ice cream. They decided to open the scoop shop at Burlington, Vt., because it was a college town without an ice cream parlor. After their discussion, they took a $5 course on ice-cream making and in 1978 opened the first Ben & Jerry’s in a converted Burlington gas station. (Daniel Richards, 2011).

The shop was quickly famous and became a favourite due to its ice cream taste and creative flavours. Ben&Jerry also offer a free film festival, do some charity for unable people, and giving away free scoops on the first anniversary which continued to happen until now. This business increased significantly and by the year 1987 sales were at $32 million. In the year 2000, this company is sold to Unilever, for $326 million. Under the term of an agreement, it is said that it will continued to operate but separated with Unilever (ciputraentrepreneurship, 2010). Today Ben Jerry’s franchises 750 worldwide (marketingteacher, 2010).

The motivation used by Ben Jerry’s company

Ben and Jerry are very concern about people who go along through the successful of their business. They believe that a success of a company comes from the employee’s support. Cohen then brings back the support to the employees.

Benefits

According to their website, Ben & Jerry’s offers some benefits package that includes the paid family leave, three free pints of Vermont’s Finest super premium ice cream, frozen yogurt and sorbets every day. This is also a company which dedicated to the policy of non-discrimination based on their gender, ethnicity, race, veteran status, sexual orientation, religious, age, national origin, or disability (benjerry,2008).

Other benefits that motivate its employees such as free health club membership, sponsored membership to local fitness centre, personal financial planning advice, and the educational cost assistance (benjerry,2008).

3.2.2 Bonus Plan

All the full-timer of this company has a right to some form of compensation above their competitive salaries. In 2008, Ben Jerry also apply “Variable Pay Award (VPA)” plan where bonuses are given based on their individual’s performance on achieving goals and targets and also based on the company’s financial performance.

There also another plan for Ben Jerry’s full-timer that made in 2008 called “Keys to Enterprise (KTE) plan. This plan focus on the bonuses and incentives which include cash, ‘Ben Bucks’ which can be redeemed in the company stores, and the other awards. In 2008, the average amount of KTE in Vermont Company was over $510, up from the previous year which is $474 (benjerry, 2008).

Supporting environment

To further encourage retention and loyalty, Cohen and Greenfield do an experiment about the evacuation of their supervisors by their subordinates, also do the exchange of ideas and opinions freely between employees. Company also have rules that focus on the employees which actually becomes positive impact. Moreover much commendation from the other industries and the important parts is that a lot of companies follow these rules. Leadership program and training also provided to the employees (Terry et al, 2004).

Other motivated factors

It is called Ben & Jerry’s Joy Gang, started in 1987 to increase the demand upon employees the first activities included pizza and 15 minutes massages for its manufacturing employees who were working 12 hours. Jerry suggested that they should try to make fun to their official part of their company culture. (Bob smith, 2005).

Comparison Table

Haagen-dazs

Ben&Jerry

Similarities

Healthcare coverage, insurance, and educational assistance.

Employees can participate to exchange their ideas and information freely.

Bonuses are given based on their individual performance.

Personal financial planning advice.

Competitive salaries and pay rates.

Differences

Online employees reward by collecting point to be redeemed for gifts.

Top employees whose performance were very satisfying, is given a thank you card which says “thank you” in over 70 languages.

Discount for employees when buy ice cream.

Performance chart which displayed on the staff notice board, including manager tips on how to improve employee’s performance.

Annual bonuses, vacation, summer hours, and flexible works arrangements.

Have “Keys to Enterprise” plan which include bonuses and incentives given by cash and ‘Ben Bucks’ which redeemed for gifts.

Dedicated to the policy of non-discrimination based on gender, race, ethnicity.

Free three pints of Vermont’s finest super premium ice cream, frozen yogurt and sorbets every day.

It is called Ben Jerry’s Joy Gang, which came from Jerry’s suggestion to make “fun” become a part of their official company’s culture.

Leadership program and training for employees.

Conclusion

In the real situation, although companies have a similar business environment, they still have difference strategy in motivating and leading their employees. As what has been shown above, Haagen-dazs and Ben Jerry almost have the same strategy in motivating their employees, but they still have their own strategy in motivating their employees. Generally, they use such as reward, acknowledgement, and appraisal in order to trigger employee’s motivation. When employees feel appreciated, their motivation level is boost leading to satisfaction of employees working in the company. Therefore, it can be concluded that motivation is an encourage which comes from inside and outside human in their effort to meet their needs, get the “wanted” position in a company, gain power and satisfaction from their work. However, in its practice, the usage of each element is different based on the needs and desire of each human.