Discussion Response

Discussion Response

Employee Incentives for Higher Productivity

Dennis Hernandez posted Jan 27, 2020 5:00 PM

Hello class,

I chose the agricultural industry for this threaded discussion.

1. What industry did you select? I chose the Agricultural Industry.
2. What are some ideas on how to improve the effectiveness of using employee incentives in the workplace? In terms of improving farm employee effectiveness for instance, farm owners could offer incentives such as:

1) Profit-sharing – rewarding farm employees for the success or profits yielded from its products.

2) Awards – for example, public recognition, rewarding with gift cards, movie tickets, or time off for being recognized as employee of the month.

3) Longevity Pay Raises – recognizes and rewards employees for staying with the company

1. What are the challenges of offering incentives in your selected industry?

1) One of the challenges of offering profit-sharing bonuses to farm employees is that even if employees perform their duties and work above and beyond what is required of them, a farm may not perform as well as anticipated. A farm could encounter issues which could hinder profitability such as decreased production due to extreme weather issues. Also, the rise and fall of the agricultural products also affect profitability and may decrease a farm’s profit.

2) An issue that farm owners may face when using awards or public recognition is that the same individuals may be recognized more often than others, causing a perceived sense of favoritism, which could lead to resentment of certain employees and a decrease in teamwork and overall productivity. Research conducted regarding a perception of fairness weighs a lot on employee retention and performance and the “perception of unfairness drives people out of organizations” (Ceplenski, 2013). In the Air Force, awards are more sought after now more than ever. Due to changes in the promotion system, a person with awards attain more points towards making the next rank as opposed to someone who has less awards. It’s only human nature for members to yearn to receive an award and only normal to become envious of others who are perceived to be a favorite in these types of situations.

1. What are your recommendations on how to overcome those challenges?

1) In regards to the issue of profit sharing and rewarding employees on a farm’s profits, farm owners could instead reward individual employees based on individual goals instead of overall farm profits. This way, an owner could show employees gratitude for their hard work no matter how the farm performs. Every worker appreciates a pat on the back or an occasional reward from time to time. In fact, a study conducted by Genesis Associates determined that as much as 85% of employees feel the need to work harder when rewards/incentives are offered (Fallon, 2018).

2) Regarding the issue of offering recognition awards and the same individuals being recognized all the time, farm owners could create different types of awards that cater to different types of individuals. This increases the chance that other employees, not the same individuals, get recognized for meeting certain goals. This strategy would decrease resentment issues and still provide a means for which employees could strive harder to meet goals in order to receive awards/recognition.

Fallon, N. (2018, January 24). Offer an Incentive to Boost Employee Productivity. Retrieved from https://www.businessnewsdaily.com/8506-employee-productivity-incentives.html

Ceplenski, C. (2013, October 10). Employee Rewards: The Importance of Perceived Fairness. Retrieved from https://hrdailyadvisor.blr.com/2013/06/29/employee-rewards-the-importance-of-perceived-fairness/

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