Employee Motivation of Qantas Airways

This article explores the employee motivation strategies of Qantas Airways, focusing on the company's bonus program and its impact on employee performance and satisfaction. It discusses the financial turnaround of the company, the distribution of bonuses, and the influence of motivation theories such as Maslow's hierarchy of needs and Herzberg's two-factor theory. The article also suggests recommendations for improving employee motivation within the company.

Running Head: EMPLOYEE MOTIVATION OF QANTAS AIRWAYS
Employee Motivation of Qantas Airways
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1EMPLOYEE MOTIVATION OF QANTAS AIRWAYS
Following the outstanding financial turnaround, employees of Qantas Airways is has high
possibilities of reaping rewards from the company’s profits. The airline has planned to spend
over 80 million dollars on bonuses which will accommodate up to 25,000 workers. All the
employees will receive an off-payment of about 5 % of the total base salary and the
workers who have accepted the wage-freeze policy is liable for more financial benefits.
Qantas has been paying an average bonus of 30,000 dollars to each employee since 2002,
although employees holding a higher rank (like pilots) are entitled to receive a higher
bonus than the low paid employees.
After the financial year 2015-2016 the fundamental pretax earnings of the company is
expected to rise by 20%. The raise will help the company pay out the bonuses evenly. Unlike the
regular wages, bonuses are considered as one-off so that it does not have any impact on final
results even though it hits the bottom line suitably. This sudden move might increase pressure on
the airlines to rewards its shareholders with an adequate dividend. Sam Dobson, an analyst of
Macquarie Equities, is of the opinion that Qantas is most likely to recommence dividend
payments while the bonus payable to the workers would be deemed immaterial.
Besides highlighting confidence in the management, bonus payment is also a practical
way of sharing goodwill that the company aims to enjoy over the time. The company’s attempt
to turn the ship around collectively by extending the benefit to the lower authorities of the
management and low paid employees. It has greatly influenced the employees of the airlines as
they now feel more motivated to carry out their responsibilities as an integral part of the
company. However, Tony Sheldon the secretary of the national union of transport workers feels
that the airline’s decision of replacing full-time workers for part time-jobs will make it difficult
to calculate the yearly bonus.

2EMPLOYEE MOTIVATION OF QANTAS AIRWAYS
Applying Maslow’s theory of the need hierarchy, Qantas has ample provisions and
facilities for retaining employee motivation. Quality training and developmental programs are
arranged to encourage innovation among employees, this fulfils the need for self-actualization.
Employee programs are held for ensuring mental well-being of the employees and for boosting
their self-esteem. The company provides travel discounts, generous maternity leaves and
childcare services to old employees. As far as security is concerned, Qantas must provide
with implemented policies that secures the employees against sudden job cuts. The
remuneration package is fairly competitive hence that satisfies well the psychological needs
of the workers. Herzberg’s two factor theory focus on achievement, recognition, responsibility,
advancement and growth for analyzing the factors that are responsible for employee satisfaction.
Qantas has operational and divisional standards allotted to different sections of the work force,
the company is deeply committed to community programs and regularly hosts programs on
employee recognition. The best part of the HR management is that it constantly encourages the
development of employee through both external and internal formal training. Qantas further
utilizes the NPS for setting clear goals for the employees which increases customer satisfaction
as much as it boosts employee motivation. The excel awards arranged by the organization yearly
has proven to improve the work quality and experience of employees. The effective rewarding
system is aimed at recognizing the employees in terms of their hard work and actions. Qantas
holds peer nomination programs and offers monetary prized to winners. Other benefits
and rewards offered by the airlines include free programs on employee assistance, access to
childcare centers and paid maternity leaves.
Bonus is essentially a recognition and an acknowledgement of the contribution made by workers
for strengthening the competitive position of the company in the market. Apart from ensuring a

3EMPLOYEE MOTIVATION OF QANTAS AIRWAYS
brighter future and a better turnaround of the entire Qantas group, the bonus payment has helped
improving employee-management relationship. The step has improved employee relationships
considerably and reduced employee turnover to a great extent. Qantas has been in a position to
reward its employees with a specific amount set aside for recognizing the efforts and
contributions of non-executive employees. The management offers frequent appraisals,
bonuses and equal employment opportunities for all workers. Promotions are based on
interviews and test rounds. All employees are given equal value when it comes to
remuneration and appraisals.
Despite the constant efforts of the management to retain employee motivation within the
work environment, there are several aspect that somehow slip through the cracks. Some
recommendations for Qantas Airways to improve the conditions and well-being of employees
include improved communications systems among employees and the management, maximizing
the utilization of reward system, engaging in more non-work based activities within the office
premise so that the employees do not feel worked up and being more transparent with the
employees. A successful organization is one that has healthy and motivated employees who are
willing to make valuable contributions for the growth and advancement of the company.

4EMPLOYEE MOTIVATION OF QANTAS AIRWAYS
References and bibliography:
Dobre, O.I., 2013. Employee motivation and organizational performance. Review of Applied
Socio-Economic Research, 5(1).
Dobre, O.I., 2013. Employee motivation and organizational performance. Review of Applied
Socio-Economic Research, 5(1).
Korzynski, P., 2013. EMPLOYEE MOTIVATION IN NEW WORKING
ENVIRONMENT. International journal of academic research, 5(5).
Lester, D., 2013. Measuring Maslow's hierarchy of needs. Psychological Reports, 113(1), pp.15-
17.
McLeod, S., 2007. Maslow's hierarchy of needs. Simply Psychology, 1.
Qantas.com. (2019). Fly with one of the world’s most experienced airlines | Qantas IN. [online]
Available at: https://www.qantas.com/in/en.html [Accessed 6 Jan. 2019].