Q.'Inaya Ltd.' is a multinational technology company focusing on artificial intelligence, online advertising and search engine technology. The company is generating good profits and takes care of the well-being of its staff. The company offers benefits like car allowance, medical aid and allowance for children's education to all employees above the Manager's level. It regularly contributes towards the Employees' Provident Fund and pays gratuity on retirement to its employees. Under a special incentive scheme, the employees are offered shares of 'Inaya Ltd.' at a set price which is lower than the market price. Each year, the company keeps aside funds to pay one percent of base salary as bonus to its employees. No wonder 90% of the employees would recommend working at 'Inaya Ltd.' to a friend. Explain four incentives being provided by 'Inaya Ltd.' to motivate their employees for better performance.
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Start your 14-day free trial to unlock the full solution →Inaya Ltd. motivates its employees through a mix of financial incentives including perquisites (car allowance, medical aid, education allowance), retirement benefits (EPF, gratuity), co-partnership (ESOP), and performance-linked bonuses.
In the dynamic world of business, motivating employees is crucial for achieving organizational goals and ensuring sustained performance. Incentives play a vital role in this, acting as stimuli that encourage individuals to perform better. These can be financial, directly impacting an employee's monetary gain, or non-financial, focusing on psychological and emotional satisfaction. 'Inaya Ltd.' employs a comprehensive strategy, offering a blend of incentives to foster a highly motivated and loyal workforce, as evidenced by its high employee recommendation rate.
Here are four key incentives provided by 'Inaya Ltd.' to motivate its employees for better performance:
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Perquisites (or Fringe Benefits)
'Inaya Ltd.' offers benefits like car allowance, medical aid, and allowance for children's education to all employees above the Manager's level. These are known as perquisites or fringe benefits. They are special benefits provided to employees over and above their basic salary and other allowances. While they may not be direct cash payments into an employee's hand every month, they significantly reduce personal expenses and enhance the employee's quality of life. For managers and above, these benefits also serve as a symbol of status and recognition within the company, motivating them to maintain high performance to retain these privileges and aspire for further growth.
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Retirement Benefits
The company regularly contributes towards the Employees' Provident Fund (EPF) and pays gratuity on retirement to its employees. These are crucial retirement benefits that provide financial security to employees after they cease working. Knowing that a portion of their earnings is being saved and supplemented by the company for their future, and that they will receive a lump sum (gratuity) upon retirement, significantly reduces an employee's anxiety about old age and financial stability post-employment. This long-term financial security acts as a powerful motivator, encouraging employees to remain loyal to the company and perform consistently throughout their tenure.
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Co-partnership / Stock Option (Employee Stock Option Plan - ESOP) …
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