RMG factories in Bangladesh struggle continuously to face the challenges of rising manufacturing costs, increased customer demands and on-going low productivity levels on the factory floor. Factories must also cope with the problem of attracting and retaining their skilled workers. Meanwhile workers depend on their monthly wages in order to cope with ever-increasing living costs and can be motivated by better remuneration and attractive incentive schemes.

On the buyer side, major brands working in Bangladesh are seeking to increase workers’ compensation packages in order to enhance workers’ living standards. Various productivity improvement programs were launched to improve productivity and increase worker wages. Unfortunately the programs are only successful at pilot stage and fail when the factories attempt to roll the programs out throughout the entire organization. Without changing the entire factory system, and with adequate management know-how, the productivity improvement programs are doomed to failure.

This desk research study explains how production-based incentives work in Bangladesh and what would take to ensure continuous earning by workers. It includes a complewte strategy to sustain incentive earning at all times.