The word incentive means something that propels an individual to perform an action or that will induce our people to work with attention and perfection, and maybe work extra.
It is human nature that they want to be rewarded for their effort. What’s better than money, that can buy what they want.
At a restaurant the waiters give you a warm welcome, help in selecting dishes, serve you with perfection and try to make your dinner more enjoyable. At the end they look for their incentive, a good tip, at 10-20% of your bill amount. At a coffee chain like Starbucks they share the entire incentive booty equally among all the employees of that store.
Some companies hire purely on an incentive basis with no basic wage. That implies you are bringing in your own salary by selling the company’s merchandise. My friend went with a Canadian company at 7% incentive on sales. But when he began earning more incentive the company proposed to engage him. Why? Because then they can confine him to salary and they had known his selling skills.
An international soft drink company,in Kolkata, during the nineties, paid its driver cum salesmen Rs.1200/- as salary and they earned Rs.12000-18000 as incentives. None of them had an appointment letter or any job’s assurance from the company. They were all paid through the dealer the company having no financial obligation of employees.
In India ownership companies create an illusion of high incentive and hire employees at a low wage. Would be employees at the time of recruitment do not recognize that all those incentives will remain a dream. Taking off a portion of incentive, very late disbursement of incentive, even not paying the promised incentive, after achieving targets. Are some of the ways of not paying.
With all the modern day management and controls, happy employees are a big key to the achievement of an establishment.