Pay for performance
Individual
Group/Team based
Company Wide
Commission
Merit pay
Piece rate plan
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Profit Sharing plans
Gainsharing plans
Improshare
Scanlon
Definition
pay strategy that uses salary, bonuses or other incentives schemes to reward employees based on their performance
paid a fixed sum for each unit of production completed
guaranteed a base rate or a minimum hourly wage for meeting some pre-established standard
paid extra for production above the pore-established rate
percentage of the sales is added to the salespersons' lower base wage
Sum of money added to their base salary
Solely given on account of the employees’ deserving performance
Definition
bind employees to the company’s productivity and provide an incentive payment based on the improvement of the company’s performance
incentive plan that uses specific mathematical formula for determining staff bonuses
provides financial rewards to employees for saving labour costs resulting from their suggestions and ideas
Definition
a percentage of the organisation's profit is distributed to employees in addition to their usual wages
Current distribution
Deferred distribution
Combined plan
payment to employees in cash or stock as soon as profits have been determined
placing company contributions in an irrevocable trust and it is credited to the employees’ accounts
part current while some shares are deferred