Blue Chips Ltd offers to its employees, issue of shares at a price which is less than the market price.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain one more incentive of the same category.
(i) By offering its employees, issue of shares at a price less than the market price. Blue Chips Ltd offered ‘co-partnership’ which is a financial incentive. The company did so in order to motivate its employees to work with great zeal.
Financial incentives It refers to those incentives which are measurable and paid in monetary form.
(ii) Bonus is an incentive offered over and above wages/salaries to the employees.