THE EFFECT OF INCENTIVES ON EMPLOYEE PERFORMANCE AND RETENTION

Abstract

Problem Statement To measure the impact of good incentives and rewards on employees performances and how the employee react against it. How the incentives retain employees in the organization for long time and deliver their performance to make organization in profits. Scope of the Study The scope of the research topic is very wide and covers the modem day’s problem of organization for employee’s productivity and their performance. This research study will also cover the retention of employee’s in long term basis. This study would describe the impact of incentives and remunerations reinforcement of employees by the organization. Research objectives Research objectives for this thesis report are to identify the factors of employee’s motivations and their impact on employee’s performance. The cost of incentives and employees productivity analysis and their impact on employee’s retention Employees Motivation Human behavior is very complex study and to understand by the organization even in the 21st century. Now the organizations are very keen to understand their employee’s behavior in workplace to identify their needs. Organization grow fast when employees take part in the development of organization at every single steps and to keep them motivated organization fulfill their needs and wants in order to perform their best and be productive for company. Final Conclusion The final conclusion of this research report is incentives has major role in the performance of the employees as an individual bases. It has also deep roots of organization profits and their survivor. Those organization who incest more on employees they grow well over the period of time. Employee’s performance is related with their satisfaction with the company. If the employees are satisfied they perform their best with the maximum capabilities in given resources. This satisfaction of employees will further lead to the retention of employees till the age of retirement. Following are the motivational factors that affect on employee’s performance and retention in short term and long term bases. Short Term Motivation Factors Money. Career Growth & Future, Job Security, Recognition & Rewards, Attractive salary & packages, Positive working Environment, Fair Appraisal, Skills Training, Gaining Respect from Others, Responsibility & Confidence. Lone Term Motivation Factors Retirement Benefits, Medical Facilities, Profit Sharing, Foreign Tours / Seminars, Supportive Management, Cash Bonus, Promotion and Career Growth, High Salary, Flexible Working Hours, Job Location