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Benefits & Incentives - Coggle Diagram
Benefits & Incentives
Incentives
(Monetary rewards)
Linked to an employee's performance as a individual, group, or org's member (e.g: Sales commission, bonus)
Influential because the amt paid is linked to certain predefined behaviours/outcomes (individual, grp, org)
Pay for Individual Performance
Piecework rates
(Wage based on amt workers produce)
Straight piecework plan
: Employers pays same rate per piece (e.g.: $0.80/component)
Differential piece rates
: Piece rate higher when greater amt is produced (e.g.: $0.80/pc if < 12/hr, $1/pc if >12/hr)
Standard Hour Plans
Pays worker extra for work does in less than a preset "standard time"
E.g.: If it a takes 2 hr for a task, if employee completes in 1.5hrs, employee earns 2 hrs work of pay
Merit Pay
System of linking pay increases to ratings on performance appraisals
Performance Bonuses
(one time)
Bonuses reward individual perf but not rolled into base pay
Employee must re-earn bonuses during each performance period
Sales Commission
Incentive pay calculated as a % of sales
e.g.: sales $5000, commission = 10% = $500
"Cobra"/"Rat" Effect
(Incentivising employees to solve probs might lead to creation of problems)
Pays for Group Performance
Gainsharing
Grp incentive prog that measures improvements in productivity & had effectiveness & distributes a portion of each gain to employees
Group Bonuses/Team rewards
Reward the members for attaining a specific goal
Pay for Organisational Performance
Profit Sharing
Incentive payment are a % of org's profits & do not become part of base salary
Stock Ownership
Stock options:
Rights to buy a certain # of shares of stock at specified price
Employee Stock Ownership Plans (ESOP):
An arrangement for orgs to distribute stocks to all employees but placing it in a trust; cash is distributed to employees when they resign or retire with company "purchasing" their shares
Benefits
(Non-monetary rewards)
Benefits required by SG law:
Retirement savings (Central Provident Fund Act)
Medical care & medical leaver under WICA
Paid AL, paid Sick/hospital leave, paid PH
Optional benefits
:
Life insurance, disability insurance, educational assistance, wellness programs, long service award, study leave & gym membership
Selecting Employee Benefits
Decisions about which benefits to offer should take into acct:
Org's goals, objectives & budget
Expectations of org's current employees & future recruits
Cafeteria-style plans
: Benefits plan that offer employees a set of alternatives from which they can
choose the type & amt of benefits they want