Submitted By: Pooja Verma

Financial Incentives refer to performance linked

compensation paid to improve motivation and productivity of employees.

According to the NATIONAL COMMISION ON

LABOUR, Wage incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration for improvements in the present or targeted results.

 Minimum Wages are guaranteed to all workers.

For a successful incentive plan, the essentials are

timing, accuracy and frequency of incentives.

It should b properly communicated.

 It provide an opportunity to workers.

Need lesser supervision. Improved relation.

High morale

 Suitable Climate Workers Participation Simple Minimum guaranteed wages Economical Prompt Payment

 Fringe Benefit is a benefit which supplements the

employees ordinary wages and which is of value to them and their families in so far as it materially increases their retirement benefits.
According to the D. Belcher , Fringe benefits are any

wage cost not directly connected with the employees productive effort, performance, service or sacrifice.

 To recruit and retain the best employees. To protect against certain hazards.

To improve Motivation and Morale.

To improve the Public image of Organization.

 According to George R. Terry

According to The Chamber of Commerce, USA