Current trends in Reward management system in Bangladesh Apparel Sector
Introduction
Many companies use labor incentive programs to boost staff enthusiasm and productivity. It is commonly understood that cutting costs helps firms compete on the global market and so perform better. Due to the country's manpower availability, the apparel sector in Bangladesh heavily relies on labor-intensive technologies (Islam, 2021). The informal worker incentive schemes at several Bangladeshi apparel factories seem to be boosting export growth and firm performance. Bangladesh is a labor-rich nation, making it perfect for the labor-intensive apparel industry. Labor is a key aspect in industrial production, especially in Bangladesh's garment industry. Human resource management is considered crucial in increasing productivity, quality, and lowering production costs, which is required to compete. Among the many ways for increasing worker productivity, reward management is a crucial role (Shafiqul, 2020).
Current Trends in Reward Management Systems
Structured incentive programs are not common in medium and large-scale Bangladeshi apparel industries, owing to the fact that the majority of privately held apparel manufacturing companies in Bangladesh are more willing to engage in a casual incentive program. It contributes to the development of the garment industry by increasing the profit margins of the manufacturers (Mikes , 2020). Workers no longer complain to upper management about the food and healthcare facilities, or about their attendance at work, after a reward program was implemented. The majority of labor incentive programs in the apparel industry have been introduced by highly educated senior managers, who have also been responsible for the industry's development in exports (Rahman, et al., 2021).
Bangladesh's Economic Expansion
A large portion of it comes from the garment industry, which, despite the economic downturn caused by COVID-19, is likely to continue to be a significant contributor to the economy for many years to come. Bangladesh is currently the world's second-largest garment exporter, behind only China in terms of volume. Since the country's initial efforts toward exporting in 1978, the industry has grown to account for 84 percent of all exports and 12 percent of its gross national product. A total of 4 million individuals are employed by this business, with the majority of them being women, who have been disproportionately impacted by the pandemic's ramifications (Hossain, 2021).
Benefits That Go Beyond Cash
Digital payment provides several advantages for Bangladesh's 4 million garment workers. Companies may use digital salary payments to reduce human contact. In addition to reducing travel and reducing crowds, digital payments have improved public health. They spent more money transferring remittances and other payments through digital methods. They also saved more and were better prepared for unexpected economic shocks. In addition to providing evidence of salary at the agreed level, digital wage payments have boosted worker satisfaction. It reduces wage conflicts (Hossain, 2021).
Conclusion
Enhancing labor productivity is key to increasing garment industry' competitiveness. It also relies on salary incentives, working conditions and skill-upgrading programs. Bangladesh has yet to attain all of these characteristics. Finally, Bangladesh's apparel industries are still a successful company and a major contributor to the economy. Currently, this industry is aiming to improve product quality by using modern technical manufacturing processes and trained workers. Moreover, the Bangladeshi government's training and support policies may help the clothing industry thrive by adopting labor rewarding programs (Islam, 2021).
References
Hossain, M. P., 2021. How digital payment systems
can boost Bangladesh's push to meet the SDGs. [Online]
Available at: https://www.weforum.org/agenda/2021/05/bangladesh-ready-made-garments-digital-payment/
[Accessed 13 November 2021].
Islam, A., 2021. Productivity
Adaptive Incentive System for RMG Workers; A Research Review. [Online]
Available at: https://textilefocus.com/productivity-adaptive-incentive-system-rmg-workers-research-review/
[Accessed 13 November 2021].
Mikes , B., 2020. Incentives
in Apparel Manufacturing. [Online]
Available at: https://apparelresources.com/business-news/manufacturing/incentives-apparel-manufacturing/
[Accessed 13 November 2021].
Rahman, M., Bhattacharya, D. & Moazzem, K. G., 2021. Bangladesh‘s Apparel Sector in Post-MFA Period-Executive Summary, Dhaka: Center for Policy Dialogue.
Shafiqul, I. M., 2020. Informal Labor Incentives and Firm Performance: A Case Study of RMG Industry in Bangladesh. International Business and Management, 8(2), pp. 19-27.
Good thought. It's better to have a good reward management system in a organisation. The implementation of strategies or policies to help reward everyone in the company in a fair and consistent way.
ReplyDeleteReward systems and reward management are frequently mentioned in human resource strategy discussions and thinking, but the ability to integrate reward thinking into overall strategic planning and analysis is often ignored. A reward system is more likely to succeed if employees are involved in their development, are consulted for their views, and are encouraged to develop a sense of commitment to the program. This includes a consultation on goals, norms, and behavioural changes that will earn rewards.Thanks for sharing.
ReplyDeleteIt May Formal way or the informal way, peoples in the organization should rewarded any how for the betterment of out come. according to your working back ground, it's explained clearly that the effect of the people(labor) rewarding.
ReplyDeleteActually with my experience in bangladesh , digital payment system was forced by the government towards factory owners during the covid situation , as a way of ddisbursing the salaries which were loaned out by government . And government did not had trust on the owners that money will go to the workers if the money get transferred to company accounts .
ReplyDeleteThis inturn says , still long way to go to get in to reward systems in BD.
BGMEA should work on educating owners on the reward systems and how it ccould give better results .
In Apparels sector employees know that rewards are tied to their performance, they will try to perform better and take ownership of their jobs. Also, it is a motivation that makes employees evolve a sense of accomplishment and take pride in their work, which in turn increases ownership.
ReplyDeleteAgreed with you and compared to all other countries in the world I think Bangladesh is in the first place who face the pandemic situation very successfully keeping up their economic growth as it is. A good article which is good positive thinking. Thank you for sharing.
ReplyDeleteIts really needed for apparel sector for reduce worker retention by rewording thru motivation, Thanks for shearing
ReplyDeleteInteresting article. strongly agreed with your conclusion. It's really important to having a good reward system specially in apparel sector, which are having thousands of employee work very hardly day by day. good one!
ReplyDeleteIts indeed a necessity in a large sector like its described in the article to support business efficiently.
ReplyDeleteReward systems are non-financial motivation methods to improve the satisfaction of employees. Reward systems are also supportive for the improvement of the performances of employees.
ReplyDeleteeven this sector not familiar to me I have enhanced my knowledge. Thank You for sharing.
ReplyDeleteReward management is concerned with the formulation and implementation of strategies and policies, the purposes of which are to reward people fairly, equitably and consistently in accordance with their value to the organisation and to help the organisation achieve its strategic goals, (Armstrong and Stephens, 2005).
ReplyDeleteReward systems are central to the Human Resource Management function. Their purpose is to attract talented individuals, motivate them and retain those that have a better fit with the organization.
In Sri Lanka and Bangladesh, workforce planning is a difficult task. As you mentioned, the garment industry is earning a huge amount of foreign exchange, so the government and companies should further introduce reward schemes to boost this sector's growth. This will help increase the company's efficiency and streamline workforce planning.
ReplyDeleteRewarding to your employees for their commitment and achievements they impressed and leads them to further motivation. I personally believed Bangladesh practicing the strategy in drastic manner to achieve the goals. Within last decade Bngladesh appearal industries developed well and investors found the country as better place to imvwst.iBangladesh vested for boosting economy will crown sooner as developed country and appearal industries taking great part of their GDP.
ReplyDelete