Pros And Cons Of Using Job Incentives
Employment Growth Incentives (EGIs) are one of the ways that employers reward their employees who have consistently met with success in meeting targets set by their employers. For companies that employ around 5000 people or more, it is quite common to offer incentive plans as part of their recruitment and training processes. While there are some major benefits of EIs, one disadvantage is that they tend to increase rather than decrease employee turnover. This article will look at some of the main disadvantages of incentives, as well as how you can ensure that your next recruitment process does not have too many disadvantages.
Jobs Growth Incentives (EGIs) Under the Employment Growth Incentives, eligible Singaporeans having an annual salary of more than $1,200 or above can receive an incentive payment of up to $1000 for every relevant job vacancy. This can be added to any other kind of incentive paid under the existing Jobs Growth Incentives Scheme (JGIs). The main advantage of an EGI is that employers can offer incentives to their employees that help to boost morale.
Adverse Effect On Motivation Since an EGI requires employers to pay the incentive first, this means that they will only give it to workers who are happy and motivated. With all the hype about an EGI being “job destroyers”, employers have a tendency to see the EGI as an opportunity to make sure their staff stay motivated to do their best for the company. Unfortunately, most EGI recipients are not happy with the amount they are paid, but the company is not willing to change its approach to compensation even if the money earner is not satisfied. This means that incentives may not always be the best method to keep staff motivated.
Employees tend to take less responsibility For people who receive incentives, they tend to focus on themselves, so as to help themselves to the rewards. Some of them will even lie to get the bonus, which is not good for either the company or the individual. This is because a lot of the money they would be getting as an incentive is spent on other things, not going out of their way to do something for the company. It is also a fact that EIs don’t work very well for people who are already employed.
Low incentive rate If an employee is already employed, the employer may choose to award them a low incentive rate to encourage them to continue with their jobs, which can lead to a loss of productivity. This has been noted as a major drawback of the scheme. It can also result in a low incentive rate if there are a large number of unemployed workers and the employers simply prefer to give low incentive rates to those who want to remain in the company.
There are two types of job incentives available for those who are willing to take responsibility for their performance, and you have to consider which would be better for your business. If you think that EIs will be a good option for you, then go ahead and get started now. If not, there are still other options that can be used in the form of incentive schemes that are less expensive and do not need a high initial investment. Just make sure you read through the options so that you are aware of the pros and cons of each option before making your final decision.