Incentive wages

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Incentive wages

  1. 1. Topic: IncentiveWages Plan
  2. 2. What is incentive wages planWage system that rewards a worker forproductivity above an establishedstandard.Incentive pay is based on a bonus given tothe workers who exceed a given standardproduction rate within a defined period oftime for increasing the efficiency ofemployees and workers
  3. 3. Things Included In IncentiveWage Plansfree house facilityfree education of children of workersfree medical treatmentBonuscommissionand other excess money gifts.
  4. 4. OBJECTIVES OF WAGESINCENTIVE PLANGood employee-employer relationship. Helps in increasing productivity. Boosts morale of employee. Motivates employee to perform better.improves quality of life. Improves the image of the organization.
  5. 5. Features of incentive plans:1) Minimum wages are guaranteed to allworkers2) Incentives by way of bonus, etc are offeredto efficient workers for the time saved.3) A standard time is fixed and the worker isexpected to perform the given work within thestandard time.
  6. 6. Types Of IncentivesStraight piecework planThe 100 percent bonus planGroup bonus plan
  7. 7. Advantages of incentiveplan(i) Increase in volume of output .(ii) Reduction of cost of production per unit(iii) Reduction of labor turnover.(iv) Reduction of idle time(v) Benefit to consumers
  8. 8. Disadvantages of IncentivePlans :i. Difficulty to fix standard time.ii. More supervision required.iii. Union opposition.iv. Rough work.v. Effect health.
  9. 9. Motives of incentive wageplanTo earn higher wageTo reduce unit costTo give rewardsControl over laborGreater output
  10. 10. Practical studyof
  11. 11. IntroductionSummit Bank Ltd is one of the fastestgrowing commercial banks of Pakistan,which, in a very short span of time, hasexpanded its network across the countryOn 18thAugust 2010, Arif Habib Bank Ltdwas rebranded as Summit Bank Ltd.
  12. 12. Incentives given by SummitBank are:
  13. 13. 1. Medical incentiveIn summit bank the medical incentive isgiven to all the employees of the bank and totheir family members.The complete medical facility is given to theemployees and their family members for thewhole year.
  14. 14. 2. CommissionThe commission is given to all the low levelemployees like guards, sweepers of the bank.The criteria for the commission is thatemployees should have their 60% of salary incurrent account and remaining 40% in savingaccount per month in the summit bank.
  15. 15. 3. GiftsThe gifts are mostly given to the Marketingemployees of the bank on their achievement ofthe tasks or goals assigned to them with in thegiven period of time and to maintain that giventasks. The gifts are LCDS. BIKES, CARSETC.The gifts are given throughout the year Aftercompleting of tasks.
  16. 16. 4. Entertainment allowanceThe other incentive given by the summitbank is the Entertainment allowance. Thisallowance consists of TEA and otherrefreshments.The Entertainment allowance is given ondaily basis from the guards to the manager ofthe bank.
  17. 17. 5. Gratuity fundThe gratuity fund is created for all theemployees. The fix percentage from salary isdeducted and added in the fund. The bank alsocontributed the same amount of percentage inthat fund.The amount from gratuity fund is given to theemployees after their retirement from the bank.
  18. 18. 6. Refreshment packagesThe refreshment packages are given to theemployees of the bank at 4 times in a year.The refreshment packages are givenquarterly at every year. The employee cantake it whenever they want in one quarter.The fix amount is given to the employeesaccording to their posts.
  19. 19. SWOT Analysis
  20. 20. Strengths:good incentives plan for low levelemployees.Clear incentives plans for all theemployees.
  21. 21. Weakness:No big incentives for high levelemployees.No proper implementation onincentives plan.
  22. 22. OpportunityThey have the opportunity to start thepension scheme for the employees.They can also give the houseincentives to the employees.
  23. 23. ThreatsThe incentives plans of competitor banksare the main threats which are attractingthe employees of the bank.The pension scheme of National Bank ofPakistan is also the threat for the summitbank.
  24. 24. ConclusionWage system that rewards a worker forproductivity above an established standard.Incentives by way of bonus, etc are offeredto efficient workers for the time saved.The incentives given by summit bank areBonus,comission,refreshment package andgifts to their employees.
  25. 25. SuggestionsThey should start the pension scheme forthe employees.Plan more incentives to high levelemployees.They should also give the house incentivesto the employees.

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