Incentive And Rewards Apparel Industry

Incentive And Rewards In Apparel Industry 


                                                              (incentive solution, 2023)

There are different type of stimulated factors are introduced in apparel sector to motivate employees for high productivity as well as to maintain product quality. Different company have different incentive criteria base on the level company wants expecting operators to be performed. The most attractive incentive schemes are introduced to sewing operators since they the heart of the of the company contributing 75% of company earnings. Incentive are paid to the employees for the extra contribution towards productivity. (Mikes, 2011)

Different incentive and reward program


                                                                       (Solanki, 2022)


According to the (indeed career guide, 2022) there are different type of incentive programs are introduced by different companies to drive for company objectives. these programs are designed base on efficiency achievements. 

1) Spot reward - This is designed amount of money to be paid after the employee reach the planned target. This is pre calculated amount pay by cash

2) Skill Allowance -  Sewing /operators / cutting operators are graded bas on number of machines they are capable of handling. Operators who are skill with more than 2 machines are considered as multi skill operators and they are paid with additional allowance.

3) Individual incentive - Sewing incentives are mainly base on team performance but still some of the companies still running their operations base on daily wage pay. Thereby use individual incentive scheme to pay incentives. Individuals are motivated with this incentive scheme but still disadvantages are more such as poor quality concerns.

4) Team incentive - In apparel manufacturing process,  each operation has a minute value. Every team member to contribute with their own operation to produce a good quality garment within the standard minute given. Earned minutes are calculated base on number of garments produced by limited operators within limited time. More the earned minute more the earning. Team incentive is base on efficiency achievement and the team can together earn more incentive if they produce more than planned.

Different incentive Methods


                                                                              (Bhasin, 2022)

There are many advantages both the company and the employee can gain through appropriate incentive scheme. Both company and the employees are benefited  but it is very important to have proper data system to monitor the accuracy of production.

1) Improve efficiency, thereby  company business goal - Team members who are motivated with attractive incentive scheme is always try their best to achieve the maximum limit incentive target. Therefore they go for high productivity. Thereby the company earning and the profit are increased. 

2) Quality mind set -  Incentive schemes are always link with product quality. Incentive deductions for poor quality is formulated in the incentive calculations. More the quality higher the incentive. Therefore team members are always motivated to earn more incentive by producing good quality products.

3) Increase team spirit - Incentive is a team game. Contribution of each member is vitally important towards final incentive earning of the team. Work hand in hand and help each other when someone struggling is one of the special feature in team incentive scheme. So this increase the mutual understanding among each team member and create pleasant working environment to work on.   


Conclusion

What expected from properly designed incentive scheme is to motivate employees to be more efficient and produce good quality product. It is really important that management monitor the data accuracy because manipulated data can always cost a huge lost to the company. Therefore there must have proper incentive verification and approval process. As well as legally written procedure for incentive payments. 

 

Mikes (2011) Incentive in apparel manufacturing. apparelresources.com[online] Available at https://apparelresources.com/business-news/manufacturing/incentives-apparel-manufacturing/. Accessed on 18th Aug 2023

indeed career guide (2022) 11 incentive program benefit for the. ndeed.com[online]. Available at  workplace. https://www.indeed.com/career-advice/career-development/incentive-program-benefits. Accessed on 19th Aug 2023.


Comments

  1. Dimuthu Edirisinghe - MBA28August 19, 2023 at 3:34 AM

    Article has specifically focused on the apparel sector. How apparel sector has taken actions to motivate employees by various incentive schemes for high productivity and product quality is an important thing in the Sri Lankan context as the industry brings majority of USD inflows to the country.

    ReplyDelete
  2. Prabath MudaligeAugust 19, 2023 at 8:22 AM

    While the post highlights advantages, it could also discuss potential drawbacks or limitations of certain incentive schemes. For example, the unintended consequences of solely focusing on quantity over quality in the pursuit of incentives could be explored.

    ReplyDelete

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