Incentives & Employee Performance

Topics: Employment, Wage, Salary Pages: 6 (1317 words) Published: August 7, 2013


The administration of staff incentives plan has now become a popular phenomenon of the total personnel policy of any organization. The plan involves these extra benefits which may not necessarily be money, which come from the kind relationship of the employer to the employees, to supplement their usual wages or salaries, from time and which are at most times geared purposely towards the enhancement of workers performance in the organization.

This plan, is very important to both the organization and the employees, from the employer’s point of view, it is anticipated that a good staff employee incentive plan will induce the employees to work hard and improve their general attitude towards the organization. But for the employee, these benefits represent some additional rights such as extra income, additional security or more desirable working conditions that should not require any additional effort.

The appraisal of the staff welfare plan is defined as “something of value apart from the agreed regular monetary payment of salaries and wages given to staff”. This will be used as the working definition for this research work.

Staff welfare services exist in all organization. They take different shapes and forms and attract different names. In recognition of their worker need fulfillment functions, they are variously called “welfare services” “welfare benefits employees” “income” or simply “supplementary”, “compensation” or “pay and non wage remuneration”.

It should be noted that for the organization to achieve its objectives her welfare service should be adequate, competitive and tailored towards the real need of the staff. Staffs are directly influenced by nature, quality and quality of welfare services offered because they compare themselves with their equals in other organizations.

All workers do prefer increase in welfare services to increases in salaries especially during the period of inflation and rising prices, workers normally get frustrated and dissatisfied when welfare services are inadequate. But if the opposite condition prevails workers have been observed to be satisfied and more committed to give off their best to the achievement of the company’s objectives.

Welfare plan is a kind of incentives given in cash or kind aimed at getting the best out of an employee or group of employees. Motivation aims at optimum performance of employees. Many factors have to do with characteristics of the individuals; different people are endorsed with different potentials, training, skills and receptions ability to change. Employees attitude and behavior are also influenced by their remuneration and other incentive such as special allowances and retirement benefits. Conditions and environment of work also affect productivity.

Incentives (welfare plan) can also be a compensation package, reward for performance, staffs prefer cash items such as salary, allowances, Eid bonuses, or in non cash items such as giving the products of the organization to the workers, protective clothing, cars and etc.

In this study, we will narrow down our view, to see how incentives work to enhance the performance of employees in XXX Organization at Garowe.


Often workers or employees are attracted to certain organizations not only because of the pay packets that are stated in the advert but also because of the benefits attached to them. Those benefits usually include COLA, communication and medical allowances together with relocation and severance pay packages.

These attractions may form a considerable objective for which such individuals made-up their mind to work in each organization. The decrease in these primary attractions of such individuals into the organization will certainly lower the morale as well as the efficiency of such individual’s performance, which will in turn reflect on the organizations productivity.

The dissatisfaction expressed...
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