Incentive Reward Program
Pay-for-Performance: Incentive Reward Program
Pay-for-Performance: Incentive Reward Program
The question of “how much does this job pay?” comes easily to most employees however they sometimes fail to recognize the complex nature that compensation and benefit programs have within an organization. There needs to be a distinct balance between these two areas – addressing the needs of the workforce but at a reasonable cost to the employer. It can be unique, especially as the generations are requiring different benefits for different work/life styles. Pay for performance is given to employees as a result of a good performance. As a Vice President of Human
Resources, I have been given six months to design and implement a Pay-For-
Performance: Incentive Reward Program for all employees including senior management. I was told to assume any details or ideas that I wish in order to support my incentive award program, knowing that it must seem fair and equitable to all employees. There is a strategic importance of performance –based pay because it helps organizations to reach their goals. When employees are rewarded fairly for meeting the desired objectives, those objectives are more likely to be achieved. When a company is highly profitable, it can share those profits using incentive pay. Incentive pay is a cash reward that is given in a lump sum amount to employees. Incentive pay should be fixed and not to be changed according to the fluctuation of profits. Performance-based pay is very important because it can influence applicants’ decision whether to apply and accept a specific offer. By using this type of pay, the company can attract top talents who can contribute in the success and meeting objectives. Moreover, performance- based pay can influence employee decision on whether to stay or leave and it can motivates employees to give the best performance.
Pay-for-Performance: Incentive Reward Program
The question of “how much does this job pay?” comes easily to most employees however they sometimes fail to recognize the complex nature that compensation and benefit programs have within an organization. There needs to be a distinct balance between these two areas – addressing the needs of the workforce but at a reasonable cost to the employer. It can be unique, especially as the generations are requiring different benefits for different work/life styles. Pay for performance is given to employees as a result of a good performance. As a Vice President of Human
Resources, I have been given six months to design and implement a Pay-For-
Performance: Incentive Reward Program for all employees including senior management. I was told to assume any details or ideas that I wish in order to support my incentive award program, knowing that it must seem fair and equitable to all employees. There is a strategic importance of performance –based pay because it helps organizations to reach their goals. When employees are rewarded fairly for meeting the desired objectives, those objectives are more likely to be achieved. When a company is highly profitable, it can share those profits using incentive pay. Incentive pay is a cash reward that is given in a lump sum amount to employees. Incentive pay should be fixed and not to be changed according to the fluctuation of profits. Performance-based pay is very important because it can influence applicants’ decision whether to apply and accept a specific offer. By using this type of pay, the company can attract top talents who can contribute in the success and meeting objectives. Moreover, performance- based pay can influence employee decision on whether to stay or leave and it can motivates employees to give the best performance.
References: Milkovich, G.T., & Newman, J.M. (1999). Compensation (6th ed.) (pp. 317-318). Boston: Irwin/McGraw-Hill. Billikopf, G. E. (1995, October). APMP Study on Incentive Pay. Quote fromAmerican Nurseryman magazine portion of study.