After reading this article you will learn about the incentive schemes for indirect workers:- 1. Incentive Scheme for Labourers, Crane Operators, Set-Up Men, Maintenance Men 2. Incentive Scheme for Supervisory Staff 3. Incentive Scheme for Managerial Staff.

Incentive Scheme for Labourers, Crane Operators, Set-Up Men, Maintenance Men, etc.

(a) They can be given the same or half the incentive what the direct workers (of their department) get.

(b) They can be given a bonus at a flat rate, (say 8-12%).

Incentive Scheme for Supervisory Staff:

Supervisory staff can be paid an incentive on the output for which it is respon­sible. There are a number of factors on which, incentives can be based.


A supervisor can be given a bonus depending upon:

a. The number of satisfactory units produced by his section/department in one day or one week,

b. The number of work hours saved in achieving the same output,

c. Reduction in scrap and wastage,


d. Net cost saved for the organisation,

e. Optimum utilization of workers, and

f. The number of orders in whose case delivery dates were met.

Incentive Scheme for Managerial Staff:

For running a concern effectively, it is highly necessary to maintain the interest and participation of the managerial staff.


Incentives to managerial staff may be in the form of:

a. Bonus:

Bonus may be given to the managerial staff in proportion to their merits, job require­ments, or salary drawn by them.

b. Issue of Shares:


Company shares may be issued to managerial staff. The number of shares, natu­rally builds up year after year and this induces a sense of discipline, loyalty and cooperation in the managers who start realising that they are partners in the company and they have to work sincerely and whole heartedly for the same. In this way labour turnover automatically gets minimized.

c. Profit Sharing:

As per the mutual agreement between the employer and the indirect workers, a portion of the company profits may be shared by the indirect workers, in addition to their normal wages, The share of profit which goes to a particular person may depend upon his salary, length of service, merits and responsibilities.

Fringe Benefits:


Free accommodation,

Provision of conveyance and phone facilities,

Financial assistance at the time of difficulty.

Subsidized children education, etc.