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Essay On Employee Incentives

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MANAGING EMPLOYEE MOTIVATION: NEW AGE INCENTIVE PLANS Nikita Khrushchev, the veteran Russian politician, once famously remarked, “Call it what you will, incentives are what get people to work harder.” Academicians, research scholars, psychologists, economists and the erudite class in principle agree that incentives do matter and they deeply influence human behavior. Uri Greezy , Stephan Meier and Pedro Ray-Biel in their paper ‘When and Why Incentives (Don’t) Workto Modify Behavior’ concluded that incentives not only play a role in organizations, but they have a wider implication in society and can potentially influence student grades, philanthropy, and even smoking. But before we examine what the effects of incentives are, let us ask ourselves – what are we talking about? What are incentives? Incentives are basically additional remuneration provided to the employees in lieu of their superior performance. There are various reasons why incentives are needed and some of them include increased productivity, stimulating individuals to work harder, creating commitment and job satisfaction and ensuring maximum utilization of employees. Incentives can be monetary which have pecuniary aspects as well as non-monetary which include job security, recognition, feedback scheme, promotion as well as job enrichment. Positive incentives such as perks and allowances …show more content…

These incentives are extremely important for retaining those “key employees “which are extremely satisfied with the salaries. These have gained more importance in the changing business scenario where the company focus on cutting cost through

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