Well Pay

Posted in Human Resource Terms, Total Reads: 211
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Definition: Well Pay

Well-Pay is an incentive scheme for employees, which was implemented to reward the employee for not being sick and absent from the working place. Well-Pay essentially combats the problems arising due to sick leaves.


The employer is not entitled to provide the employee with a paid sick leave. But in order to fight the problems related to absenteeism - it was important to construct paid sick leaves. But research shows that sick leave plans may actually increase the sick leave use by the employees. There is empirical which suggests that organisations with sick leave programs face almost twice the absenteeism of organisations without a program.


Therefore it was imperative to introduce Well-Pay scheme as they will incentivise employees for not being sick, keeping physically healthy and reporting to work regularly.

 

The Well-Pay scheme will increase the overall effectiveness of the organisation as it encourages people to be on the job and not take unnecessary leaves on the pretext of being sick - these leaves are a farce in a significant number of cases and this scheme will reduce the employees' tendency to lie and take the leave.

 

Following are the objectives of the Well-Pay scheme

a. It offers the employee an incentive to stay well

b. Lower the absenteeism rate faced by the organisation. The exact proportion of a fake sickness cannot be determined. So, with the help of this - we can ensure that the fake sick leaves are reduced to whatever extent.

c. Improve the productivity of the organisation.

 

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