How Lucrative Your Attendance Bonus System is and its Impact?

This is a known fact that worker shortage is a big issue in Ready-made Garment Industry in our country. And a high percentage of operator absenteeism makes factory performance worse, in term of achieving factory efficiency and meeting deliveries. To tackle an issue such as worker absenteeism factories started giving attendance bonus to motivate their workers. Even, factories compete with their neighbor factories to attract more workers with better salary and bonus amount and other benefits. In the same area where one factory is committing to pay bonus INR 400.00 others are giving bonus upto INR 650.00 per month for full attendance.

Providing attendance bonus to workers is a good idea. Now question is - does your attendance bonus plan able to motivate your operators to be present full month?

It is true that operators come to the factory to earn money. If they get extra money just for coming full month why they should be absent? It seems very easy to control absenteeism issue.

I discussed this issue with factory IEs, who give attendance incentives to their workers (especially sewing operators). When it comes to the impact of the bonus system, I got different views from them. Read below to know what others think -

#1. It makes a big difference. 

Vineet, IE head of a large scale garment manufacturing company in Gurgaon, has experienced a positive impact of attendance bonus. Even in the day with bad weather, his lines were full with operators.

#2. Not much difference. 

Rajesh thinks, operators who works in the garment factories are mostly migrated from other states of the country and they are living in industrial zone to earn money. Why should they do absent? Operators does not absent without any reasons. His problem is operator turnover.

#3. Attendance bonus is not effective. 

Madhaiyan posted an issue in OCS Forum that in his factory they had announced attendance bonus of INR 1000.00 per month for full attendance. And the same operator will be eligible to earn INR 1000.00 additional if he/she is present to work three months continuously. He said, even announcing such lucrative attendance bonus operators don’t attend or fail to attend full month.

The above problem rose by Madhaiyan clears a point that money can’t motivate everyone. There are other factors also that HR needs to look into to motivate operators and to reduce workers absenteeism rate.

Paul Collyer has mentioned a good point on the same forum. Why incentive bonus to be designed for 100% attendance only? “If at the start of the bonus period an employee is unavoidably absent and the bonus lost then there is no incentive to attend for the remainder of the period.”

Incremental attendance bonus will be more effective than 100% attendance bonus.

I want to listen from you. Share your experience in the below comment box.

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