How Worker’s Productivity Determines Incentives

Workers productivity is both important to the firm and the employee himself. A worker’s productivity is determined by various aspects which influence the efficiency and quality of work. Companies are investing heavily on their workforce because they are well aware that without them, there would be no production.

Workers are the company’s assets and failure to maintain a good relationship with them may lead to low productivity thus leading to a drop in profits. However, when workers productivity is high, they largely benefit as the company’s revenues increase and with a good cash flow, workers hard work is paid off handsomely.

There are various ways in which workers benefit from their productivity. These include:

Salary Increments, bonus and incentive schemes

Workers performance is recognized by salary increment where the management shares some of their profits with the employees. This greatly motivates the worker and in return works more efficiently.

This is to ensure that the worker gets what he/she deserves and proves to the workers that the management cares about their needs. Bonuses are usually given after a certain period of time and is usually based on the level of productivity.

Insurance Benefits

When workers productivity is high, the company is able to insure each individual by registering them with the insurance company. This is beneficial as it covers medical care in case of sickness, accidents or death where all expenses are paid in full.

It also compensates workers in case of injuries and disabilities which occurs while working in the firm. To this regard, every worker in a firm should possess a Ni number. It is used to pay taxes, work, and access to social security and medical care.


When productivity is high, the company is able to reap from the huge profits incurred. Since the workers are the most valuable assets in the firm, they are provided with training and education insurance.

The training is usually done to sharpen their skills and to help them familiarize themselves with the changing world of technology. Others are offered full education sponsorship in higher learning institutions and thus adding valuable knowledge which benefits them in future.

Investment options

A good company rewards the workers hard work by providing them with insurance for their businesses where they benefit from several coverage’s, offering them loans and also registering them with money lending institutions where they easily access loans which they use to start investments.

The company stand as their guarantors which makes it easier for them to invest without any fears.

Job Security

A company lays off its employees when there is a drop in productivity. Extreme measures are taken to ensure that all excess manpower is rid of. This greatly affects the workers as most of them solely depend on the job for survival.

High productivity ensures all workers are insured in case of lay-offs where they get compensated. Insurance provides them with income even when unemployed.


Author Bio
Flora, a passionate blogger who shares her thoughts on various topics she came across. As certified as a Masters in Finance, she frequently analyze the financial aspects which she come across and shares her knowledge in various blogs. Presently she is working for Ni number.

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