National Wages and Productivity Commission

ENGAGING EMPLOYEES
IN DESIGNING AND
IMPLEMENTING
PRODUCTIVITY
INCENTIVES SCHEMES

Learning Session
OUTLINE PRODUCTIVITY
Concepts, productivity
improvement, productivity
incentives

EMPLOYEE ENGAGEMENT
Definition, benefits, drivers

AVAILMENT INCENTIVES
For both employers and workers
 WHAT IS
PRODUCTIVITY?
 WHAT IS
PRODUCTIVITY?
Go to www.menti.com
and use the code 4231 5163
 DEFINITIONS OF
PRODUCTIVITY

TECHNICAL SOCIAL MANAGEMENT

ratio of outputs produced an attitude of mind that efficiency and
per unit of resources seeks to continuously effectiveness
consumed improve what already
exists

Source: Asian Productivity Organization

 WHAT ARE THE
COMMON
CHALLENGES
WITH EMPLOYEES?
EMPLOYEE
ENGAGEMENT
EMPLOYEE
ENGAGEMENT
Mental and emotional connection
Involvement and enthusiasm
Willingness and ability to contribute
Psychological investment
 PROACTIVE
MOTIVATED
HAPPY
RESPONSIVE
ACCOUNTABLE
AN ENGAGED COLLABORATIVE
EMPLOYEE IS: INNOVATOR
 DISENGAGED
EMPLOYEES

87% 54% 18%

more likely to workers with cost equivalent to their
leave the company high-level stress annual salary

Source: The Gallup Organization

 ENGAGED EMPLOYEES

25% 28% 43%

higher overall companies outperform
MORE PRODUCTIVE
well-being their competitors

Source: The Gallup Organization

EFFECTIVE EMPLOYEE
ENGAGEMENT
CLEAR CONNECT

CONFIDENT CREDIBLE

CONVEY CAREER-DRIVEN
 WHO DRIVES
EMPLOYEE
ENGAGEMENT?
HR MANAGER LINE MANAGER
Designs, measures, and evaluates Creates a respectful and trusting
proactive workplace policies relationship with their employees

Attract and retains talent for the Communicates company values and
growth and sustainability of the sets expectations for the day
company

 ROLE OF
MANAGERS

59% 54% 67%

Employees who work Employees whose Employees whose
for engaged managers managers are open managers focus on
are more likely to be and approachable are their strengths are
engaged engaged engaged
 EMPLOYEES
Healthier employeers
Greater employee
BENEFITS OF satisfaction
EMPLOYEE Better work quality
Happier employees
ENGAGEMENT
 EMPLOYERS
Low absenteeism
Improve retention
BENEFITS OF Higher profitability
EMPLOYEE GREATER PRODUCTIVITY

ENGAGEMENT
 Employee engagement
balances productivity in one's
job with enjoyment in one's work,
optimizing both employee
satisfaction and organizational
outcomes.
HOW DO WE MAKE
EMPLOYEES
ENGAGED AND
PRODUCTIVE AT THE
SAME TIME?
PRODUCTIVITY
INCENTIVES
are bonuses given to workers as
a result of increases in their
productivity performance.
 EMPLOYEE
ENGAGEMENT
THROUGH
GENERATIONS
 BABY BOOMERS
age: 56 to 74 years old
motivation: leadership opportunities,
financial security, competitive pay, and
steady employment
GENERATION X
age: 40 to 55 years old
motivation: financial security, childcare,
petcare, flexibility, and leadership
opportunities
 MILLENNIALS
age: 22 to 39 years old
motivation: work-life balance, social
working environment, a sense of purpose,
training opportunities, flexibility
GENERATION Z
age: 11 to 21 years old
motivation: work-life balance, stimulating
environment, flexibility, diverse
workplace, and a sense of purpose

 ENGAGING
EMPLOYEES
WITH SPECIAL
CONCERNS
 PERSONS WITH
DISABILITIES WOMEN WORKERS

motivation: considered equal and motivation: equal opportunities, family-

treated just as any other member of the friendly workplace, proper reward
workforce, supportive community structures
FROM MINORITY LGBTQIA+++
GROUPS
motivation: nondiscrimination policies,
motivation: supportive workplace,
inclusive corporate communications,
inclusive and diverse cultur
trainings on diversity and inclusion
DRIVERS OF
EMPLOYEE
ENGAGEMENT
 TALENT AND STAFFING

PRODUCTIVITY WAYS TO DRIVE EE:

PROBLEM AREA:
UPSKILLING
PERSONNEL DOWNTIME

KEY PERFORMANCE SOURCE OF INCENTIVE:

INDICATOR: SAVINGS FROM
ABSENCES' REDUCTION ATTENDANCE
 EMPOWERMENT
AND AUTONOMY

PRODUCTIVITY WAYS TO DRIVE EE:

PROBLEM AREA: CULTURE OF TRUST;
LOW EMPLOYEE MORALE DELEGATE TASKS

KEY PERFORMANCE SOURCE OF INCENTIVE:

INDICATOR:
SAVINGS FROM
SATISFACTORY TARGETS CUSTOMER RECOVERY
 REWARDS AND
RECOGNITION

PRODUCTIVITY WAYS TO DRIVE EE:

PROBLEM AREA:
CELEBRATE VICTORIES
INCONSISTENT AND UNFAIR
REGULARLY
APPRAISAL PROGRAMS

KEY PERFORMANCE SOURCE OF INCENTIVE:

INDICATOR: SAVINGS ON DEFECTS
REWORK/REJECT REDUCTION
 CAREER DEVELOPMENT

PRODUCTIVITY WAYS TO DRIVE EE:

PROBLEM AREA:
CREATE ADVANCEMENT
EMPLOYEE RETENTION OPPORTUNITIES

KEY PERFORMANCE SOURCE OF INCENTIVE:

INDICATOR: SAVINGS ON
WORK QUALITY EMPLOYEE TURNOVER
 SENIOR LEADERSHIP

PRODUCTIVITY WAYS TO DRIVE EE:

PROBLEM AREA:
FOCUS ON CORE VALUES
POOR RELATIONSHIP BETWEEN
AND EVERYDAY EXPERIENCES
EMPLOYEE-MANAGEMENT
KEY PERFORMANCE SOURCE OF INCENTIVE:
INDICATOR: SAVINGS ON
INCREASE IN SALES/PRODUCTION
OUTPUT
PERSONNEL DOWNTIME
 EMPLOYEE EXPERIENCE

PRODUCTIVITY WAYS TO DRIVE EE:

PROBLEM AREA:
CONDUCT
DEMOTIVATED EMPLOYEES
SURVEYS/QUESTIONNAIRES

KEY PERFORMANCE SOURCE OF INCENTIVE:

INDICATOR: SAVINGS FROM CUSTOMER
CUSTOMER SATISFACTION
COMPLAINS
 EMPLOYEE WELLNESS

PRODUCTIVITY WAYS TO DRIVE EE:

PROBLEM AREA:
CREATE A HEALTHY
UNDERPERFORMING EMPLOYEES
WORKPLACE
DUE TO SICKNESS
KEY PERFORMANCE SOURCE OF INCENTIVE:
INDICATOR: SAVINGS ON
EMPLOYEE
ABSENCES/LATES
PUNCTUALITY/ATTENDANCE
 Engaged employees are
more likely to support
productivity improvement
programs and an engaged
workplace will more likely to
realize productivity gains.
PRODUCTIVITY
AGREEMENT
ensures sustainability of
productivity improvement
programs and gainsharing
 WILL THE
MANAGEMENT
SUPPORT
PRODUCTIVITY
INITIATIVES?
 50% 50%
deduction of the total deduction of the total grants to
productivity bonuses given to employees for manpower
employees training and special studies
 ADDITIONAL
BENEFITS:
GREEN
PRODUCTIVITY
INTERVENTIONS
 50% EXEMPTION FROM
IMPORTATION DUTIES
deduction of the total expenses
equipment used for generating
for skills training and research
and sustaining green jobs
development expenses
TAX TREATMENT
FOR EMPLOYEES
FOR
PRODUCTIVITY
INCENTIVES
RECEIVED BY Productivity incentives, among
EMPLOYEES others, not exceeding
Php 90,000 are excluded from
the gross income.
 FOLLOW US!

@dole.nwpc @nwpc_dole National Wages and www.nwpc.dole.gov.ph

Productivity Commission