Clayton Alderfer's existence-relatedness-growth (ERG) theory is also a need theory of work

motivation. Alderfer's theory is built on Maslow's hierarchy of needs but reduces the number of
universal needs, only mentioning growth needs, relatedness needs, and existence needs (as
shown in the picture). ERG theory assumes that people can try to satisfy multiple needs at once
and further addresses the frustration process. As we have known, Alderfer suggested that when
an individual is motivated to satisfy a higher-level need but has difficulty which makes a person
will be disappointed, but this frustration is the motivation to satisfy lower-level needs will
increase.

Picture: Alderfer’s ERG Theory

(Source: Jennifer and Gareth, n.d.)

At existence need, the prospectus has shown that labor contracts and employees'
compensation will be paid by the Labor Law, ensuring employees have jobs and income to meet
basic needs. Moreover, the company always encourages employees and departments to
operate more efficiently and improve labor productivity by monthly awarding bonuses to
departments that are dynamic in business and awarding bonuses for excellent individuals in
cash equivalent to 8% - 20% of monthly salary. In addition, year-end bonuses of employees are
based on the business results of that year, and employees are granted insurance policies
according to state regulations.
At relatedness needs, Nutifood has done quite well, they understand the working environment
is the most important factor to bring satisfaction to employees. NutiFood's aims always build a
happy working environment, a team of employees who are engaged, friendly, and united. As
shared by the Head of Customer Service Department: "The Board of Directors always pays close
attention to the employees' lives, is open, listens and shares. Colleagues are friendly, sociable,
and cooperate enthusiastically". This shows that there is open two-way communication
between senior and managers to develop and make strategic decisions in the company
together.

At growth needs, needs are for self-development and creative and productive work. At
Nutifood, the company's leadership always recognizes their achievements, contributions, and
efforts, helping everyone to maximize their capacity and have the opportunity to promote
fairly, this shows through the promotion and appointment rate of NutiFood is 20%, much
higher than the common level in the market. Moreover, the company also has a policy of
international insurance for managers and family, everyone can feel secure in their work so that
employees can focus on self-development, increase knowledge and skills and achieve maximum
work performance at a high level in collaboration.

Nutifood always pays attention to each level of an employee's needs, so employees often feel
that they work in a professional working environment and have a good and adequate welfare
regime. Nutifood has been recognized by HR Asia as the company with the best working
environment in Asia.