Question

Keshav Bannerjee is the Chief Executive Officer (CEO) of Das Networking Lad, a leading IT company in Bengaluru. He believes that if needs of employees are taken care of, the employees take good care of the customers. In this company various benefits are provided to the employees to help them meet their medical and housing needs etc., while in job. It is also providing benefits like gratuity at the time of their retirement. The employees are provided various opportunities to attend skill development. Programmes to improve their skills and be promoted to the higher level jobs.

Identify and state the three incentives offered by the company in the above para to improve the performance of its employees.

Answer 1

The three incentives offered by the company in the above para are: 

(i) Perquisites: In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children etc., over and above the salary. These measures help to provide motivation to the employees/ managers. In this case the benefits are provided medical and housing needs. 

(ii) Retirement Benefit: Several retirement benefits such as provident fund, pension, and gratuity provide financial security to employees after their retirement. This acts as an incentive when they are in service in the organisation. 

(iii) Career Advancement Opportunity: When employees are provided promotional opportunities they improve their skills and efficiency with the hope that they will be promoted to the higher level. Appropriate skill development programmes and sound promotion policy help achieve promotions. Promotion works as a tonic or a big stimulator which induces people to exhibit their best performance.