Financial Incentives Essay Example | Topics and Well Written Essays - 500 words - 23

Financial Incentives - Essay ExampleFinancial incentives purge a value on the accomplishment made by the member of staff. It serves to encourage brilliant and open but unenthusiastic employees thus raising their efficiency. In addition, it creates healthy competition among workers thus increasing the turnover. It motivates an employee to revolve about on the target frozen. It leads to the attachment of the individual to the attach to, therefore, growing their level of commitment. Moreover, it links additional productivity with added pay. The former(a) merits of monetary incentives are to serve as the machinery of attracting other expert workforce and motivating workers to put aside extra effort.However, financial incentives john sometimes be small and demoralizing if not earned. It can in any case have a negative impact on unenthusiastic employees, who will fail to meet the set targets. Furthermore, it causes rifts and divisions among the workers, which will in turn negative ly affect the productivity, hence the overall turnover of the company. In addition, it may lead to discrimination of the under performers and ineffective evaluation of individual skills since it is based on performance. Lack of cooking of supervisors on ways to determine the performance, may lead to the incentives not being standard, which leads to discontent among the employees. The downside of offering financial incentives to achieve customer satisfaction is the employees focus is short term, which does not reflect the companys long-run goals. Moreover, it does not offer a system that measures the value of the employees skills. The focus on short-term goals causes the discounting of potential difference income of business at an elevated rate than is best for the business. The other incentives apart from financial incentives the company can offer include gift certificates, plaques, individual travel program, merchandize prizes, commissions, stocks and shares in the company and achievement recognition of the employees. The company has been in the market extensively to develop goodwill repute for theatrical role, q. This repute is based on the quality of service and customer care distinctiveness.