Incentive Plans

According to an essay published on the BusinessTown.com website, the right incentive plan properly implemented can quickly drive an organization ahead and a poorly designed plan can cause problems and create resentment. Years ago, the only employees offered incentive pay were sales personnel and people working on piece meal workers and senior management. Today, incentive plans are becoming the norm rather than the exception in corporate America. Incentive compensation is an important part of any compensation plan. Incentive pay shows appreciation and creates a sense of participation in the organization's well-being. A properly designed incentive plan can also help encourage teamwork and give each employee an extra push to excel. Profit-sharing plans are probably the most widespread incentive-pay programs at larger corporations. An alternative is an individual bonus incentive program. The annual payout under this program is determined by a subjective evaluation of each person's performance throughout the year. The advantage of this arrangement is that there is complete flexibility if an employee has an extraordinary accomp

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Category: Business - I