C11. PAY FOR PERFORMANCE & EMPLOYEE BENEFITS - Coggle Diagram
C11. PAY FOR PERFORMANCE & EMPLOYEE BENEFITS
Individual Employee Incentive Plans
For Managers & Executives
: Salary, and long-term incentives, and perks. Align with each other and with the company’s strategic aims.
: Ties pay to productivity or profitability
: Any salary increase the firm awards to an employee based on his/her individual performance
: Salary Plan: fixed salaries.Commission Plan: pay salespeople only for results.
: Paid a sum for each unit he/she produces
: Eligibility, Fund Size, Individual Performance & Formula.
: Long-Term, Stock Options, Other Stock Plans
Pay For Time Not Worked & Insurance Benefits
Supplemental Pay Benefits
: Refers to benefits for time not worked such as unemployment insurance, vacation and holiday pay, and sick pay
: Provides benefits if a person is unable to work through some fault
one-time payment some employers provide when terminating an employee
: income and medical benefits to work-related accident victims
Hospitalization, Health, & Disability Insurance
Team & Organization-Wide Incentive Plans
encourage productivity, resulting cost savings (gains) shared among employees and the company
ESOPs - Employee Stock Ownership Plans
are company-wide plans in which
the employer contributes shares of its own stock to a trust established to purchase shares of the firm’s stock for employees.
: Plans in which all or most employees receive a share of the firm’s annual profits
How to Design Team Incentives
Pay For Time Not Worked
Vacations & Holidays
Personal Services & Family-Friendly Benefits
Family Friendly (Work-Life) Benefits
: Subsidized Child Care, Sick Child Benefits
Other Job-Related Benefits
: Elder-care services, Domestic partner benefits