Briefly explain any four financial Incentives offered by a company to its employees in order to motivate them
Answers
Explanation:
1. Pay and Allowances:
Salary is the basic monetary incentive for every employee. Beside basic salary, it also includes dearness allowance, travelling allowance and at times some other allowances too. It also consists of continuous increment in the pay every year and increase in allowances from time to time.
2. Productivity Linked Wage Incentives:
Sometimes wage incentive plans are linked with payment of wages to increase productivity at individual or group level. Their quantum is based on actual output against targets.
3. Bonus
It is the incentive which is given over and above the salary or wages of the employees. Many companies offer the bonus during the festivals Diwali, New Year etc.
4. Profit Sharing:
It refers to providing a share to employees in the profits of the organisation. This helps in motivating the employees to improve their performance and to contribute their maximum effort for increasing the profits.
5. Co-partnership/Stock Option:
Under this incentive scheme, employees are offered shares at a price which is lower than the market price. This practice helps in creating a feeling of ownership among employees and motivates them to give their maximum contribution towards organisational growth. For example, in Infosys this scheme has been successfully implemented.