Incentive To Indirect Labour

Performance of indirect workers such as supervisors, maintenance, stores, and office and canteen staff cannot be measured directly, and therefore, introduction of incentive scheme for them poses a problem. But it is essential to provide incentive to them as much as to the direct workers due to the following reasons:

• Indirect workers maintain the facilities for production. Without this, it would be difficult for direct workers to get incentives for better performance.
• It is unfair to deprive indirect workers from incentives because it is difficult to measure their performance.
• If direct workers enjoy incentives, and indirect workers remain without incentives, it would lead to gross dissatisfaction among the latter resulting in poor maintenance and ultimately lead to labour unrest.  On the other hand, an incentive system for indirect workers will assist in maintaining high efficiency levels at service cost centres and will create a good team spirit between direct and indirect workers.

For the purpose of incentives, indirect workers may be grouped as under:

• Those working with direct workers, such as supervisors, inspectors, checkers, transport workers, etc.
• Those rendering general service, such as, sweepers, canteen workers, maintenance workers, stores, dispensary, time office and other office staff, etc. For the first group, bonus may be based on the output of direct workers with whom they are attached.  Under this group, wherever standard can be established say, for material handling, inspection, regular repair, etc. incentive can be based on those standards. For the second group, bonus to be paid shall be determined on a wider basis considering output of department or the factory as a whole, or a percentage of bonus payable to direct workers, etc. 

Non–Monetary Incentives

Incentives to the workmen could be given by way of good working environment, facilities for various needs of the employees and some free benefits which are not related to job functions.  The range of non-monetary incentive is too wide. The objectives of such incentives are as follows:–

• Making condition of employment more attractive,
• Promoting better health,
• Reducing absenteeism,
• Encouraging loyalty,
• Minimizing labour turnover, and
• Maintaining a happy and contented staff.

Non-monetary incentives may be offered in several ways, - some of which may be free, while others may be subsidised. A few examples are quoted below:–

• Canteen — free or subsidised.
• Fair Price shop — subsidised.
• Medical facilities for employee and his family.
• Education and training facilities — to the employee and his children.
• Recreation club
• Housing facility
• Other welfare facilities like holding sports, annual day, long service awards.
• Funds contribution - subsidies to sick and benevolent funds.