Monday, February 25, 2013

Workfare and its impact on business


Hi Mr Tan,
I would like to share with the impact on workfare in my company. Being a public listed company, the company was expecting 30% year on year growth from their subsidiaries, and KPI and variable pay structure was set based on these expectations.

Of course, the staff complained that the global and local economies are having difficulties and the growth targets were not in line with what is happening outside.

With workfare, it was hoped that the targets can be lowered and staff have a better chance to achieve their variable pay components by hitting a lower target. 

However the company while accepted workfare as a reduction of overall cost of doing business, did not translate this back to a lowering of performance targets for the staff. Targets remained as per 30% year on year. So, with or without workfare, it meant little to the individuals working in the company.


2 comments:

Mike Portnoy said...

Congratulations Kin Lian Tan! Thank you so much for taking the time to share this exciting information.

Tan

Janey Yeo said...

Mr tan...there is something fishy with this guy's comment...workfare is paid out directly to workers, not employers..individuals do directly benefit. My mother's workfare is credited straight into her cpf

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