HRSINGAPORE Community Discussions
Sick Leave Bonus
Dear HR Professionals,
Would like to know, if any of your organization practices sick leave bonus.
Eg, if the employee in 1 calendar year, never take any sick leave, the company will give a 1-month bonus to them?
We do offer a fixed sum, to non-management staff. I think 1 month is very generous. To pay 1 month may not be financially feasible for the company. We base it on 6 months - 1 year is quite hard to achieve. It should be something staff sees as achievable or else they will not bother even if there is an incentive.
In my previous organization (Manufacturing industry), if the employee didn't take sick leave for a whole calendar year, we would award the employee with a fixed $200 plus small gifts (bag-pack, jacket, kitchen sets). We call it Zero MC Award.
That is usually a ZERO MC / FULL ATTENDANCE practice and its not an ethical indication of one’s health nor productivity. Not in favour of this one. Repackage it to something else that employee won't be penalized against their entitlement.
No, had issued out No-MC award during annual dinner. Just a token to recognise employees for staying healthy.
Before you go ahead with the payment of one month’s bonus for no sick leave in a year, consider the following points:
1. Sick leave entitlement is only 14 days per year (excluding hospitalisation).
2. Sick leave should be taken by an employee who is genuinely ill. He/she should NOT be encouraged or allowed to work in order to claim the bonus. Some would even use annual leave to cover their sick leave in order to qualify.
3. Statistically, about 75-80% of your employees do not utilise the sick leave entitlement. So the problem really is the 20-25% minority. However, this payout would be a major wage item every year for the company. The owner would have to do serious thinking when the company faces an economic crisis i.e. do you still pay this kind of bonus?
4. How are you going to deal with sick conditions like chicken pox, measles, dengue fever? Does it mean the employee who contracts this illness is unfairly denied his bonus?
5. Do you think by paying a bonus for no-sick leave, the sick leave abusers will stop their absences due to “mental” rather than medical conditions?
Ultimately, what is the real purpose of bonus payout? Performance (which includes punctuality and regular attendance) and productivity or sick leave absence?
We rewarded staff $100 half yearly as zero sick leave benefit dollars. These benefit dollars can be redeemed for health screening package, medical cost, vision care, dental treatment, TCM, health supplement & pharmaceutical products.