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What is the Best Incentive?

Incentive schemes have been much be undertaking the training of any
criticised in recent years, and it is employee representatives in work study
quite true that some schemes have been techniques?25. Are the mechanics of your
singularly unsuccessful. Their failure, scheme simple enough to enable all
however, has often been the result of employees to fully understand how their
inadequate planning, rushed introduction, pay is calculated?26. What standards will
or not thinking through such a scheme you use to evaluate performance to ensure
properly. These points should not be used that a proper balance is maintained
to generally condemn other more between:a. Increased outputb. Maintaining
successful applications.Whether any qualityc. Efficient use of equipment or
particular incentive scheme achieves long materials?27. How will you relate payment
term success depends initially on the to performance? e.g. in direct proportion
thoroughness with which the current to output?28. On what length of time will
working situation is reviewed, hence the you base payment? e.g. hour, shift,
need to re-look at some key Action week?29. Will you gear the scheme to the
Points, and question why you need an individual, working group, department or
incentive scheme.1. Increase in earnings factory?30. Will you apply the scheme in
for employees? some way to direct as well as indirect
2. Increase in output? personnel? If not, how will the problem
3. Improvement in quality? of increased or decreased differentials
4. Better mobility of labour? be solved?31. Will official disputes
5. More efficient methods of working? concerning the operation of the incentive
6. Improvement in safety? plan be handled through the normal
7. Higher housekeeping standards? negotiating and disputes machinery?32.
8. Reduction in absenteeism? What will be the principles governing
9. Reduction in labour turnover? payment for 'waiting time' or unmeasured
10.Reduction in overtime working?Any of work?33. Will any scheme you introduce be
these points or a combination, will on a gradual basis or do you intend to
determine how you introduce and apply it to all appropriate sections at
communicate such a scheme. The following the one time?34. How will you calculate
questions will act as an "aide holiday pay for pieceworkers?It's
memoire".11. Does the work necessitate notoriously difficult to put together an
skilled, semi-skilled or unskilled incentive scheme that motivates all of
labour?12. Can individual skill be fully its targets, and that continues to do so
applied when manipulating machines etc. over an extended period. You may be
or is the employee's quantity and looking to get the most from your staff
quality of output regulated to a large by increasing motivation, improving
extent by factors outside his/her morale and encouraging
control?13. Does the level of output efficiency.Incentive awards are a way of
remain steady throughout the year or is rewarding employees and others with cash,
it subject to seasonal variations?14. Is goods or holidays rather than increases
production organized on a process flow in pay. There are Two Basic Types Of
line, batch or jobbing basis?15. Have Incentive Scheme, Financial and
your current production methods been Non-FinancialSchemes can vary from
recently reviewed for maximum national promotions to a prize raffle
efficiency?16. Is any new machinery or held by a small firm.
plant, to be introduced in the near Rewards of goods or holidays will
future, likely to upset the standard upon usually involve the use of a
which an incentive scheme might be voucher.Awards may be linked to sales
based?17. Have you sufficient qualified performance, good timekeeping, safety or
staff to introduce an incentive scheme, production records, or may involve
or alternatively, have you one qualified participation in a lottery or prize
employee who is capable of training other draw.There should be increasing
staff in work study techniques?18. Once consistency in the ways that reward,
the scheme is introduced, will you have recognition and incentives are offered to
the necessary number of staff to be able customers, staff and distributors.
to keep it under constant review, and to Participants should always have the power
introduce modifications where of choice, enabling them to self-target
necessary?19. Will the present staff in and work towards things that are exciting
the wages department be able to cope with or important to them.Incentives that are
bonus calculations etc. without always won by a small group of high
additional help?20. Are other parts of performers, breed more resentment than
the organization such as Production motivation, while the high performers
Control, Maintenance, Distribution etc. themselves soon become bored with the
geared to cope with the increased flow of repetition of holidays, and activities
materials and output that are likely to that are open to them.The aim of an
result?21. Are your present channels of incentive scheme is to improve the
communication, both formal and informal, performance of your business, whether it
capable of coping with the dissemination is your employees, customer's or supply
of detailed information to all employees, chain.As a result the most successful
on the workings of any proposed incentive incentive schemes tend to be those
plan?22. Have you the necessary matched to the individual's requirements,
facilities, away from the production but which still appeal to the company as
area, for any operative training or a whole.You will find that with a little
re-training that might be required?23. extra thought, allied to a willingness to
Have you agreed the principle of using be creative, can make a quantum
work measurement with the trade unions difference to the effectiveness of an
and employee representatives?24. Will you incentive programme.




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