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PAY-FOR-PERFORMANCE PLANS (Individual Employee Incentive and Recognition…
PAY-FOR-PERFORMANCE PLANS
Team/Group-based Variable Pay Programs
Production standards set for specific work groups
In orger for team incentives to work, individuals must work as a team and be rewarded as a team.
Rewards must be tied to the overall performance standard
Individual Employee Incentive and Recognition Programs
Piecework Plans
Payment for each unit produced
Pro: Easily Understood
Con: Quantitty Over Quality
Merit Pay
Permanent cumulative salary increase
Based on individual or individual & organizational performance
Bonuses
Improved Pension Plan
Recognition-based Rewards
Positive Impact on Performance
Online Reward Program
Executive Incentive Compensation Programs
Larger Stock Options
Bigger Bonuses
Sales Compensation Programs
Commission Plan
Pay is only a percentage of sales
Combination Plan
Pay includes both a salary and a commission
Straight Salary Plan(Salary Only)
Commission Plan(Pay for Results)
Combination Plan(Salary and Commission)
Organization wide Incentive Programs
Profit-Sharing Plans
Designated shares of profit divided among employees
Employee Stock Ownership Plan (ESOP)
Gainsharing
An incentive that shares gains resulting from cost-savings with employees
Common effort
Incentive plan
Gains are shared