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What companies or jobs use incentive compensation to encourage productivity?
Wiki User
∙ 14y ago
Incentive compensation at work could take the form of a sales commission, recruiter bonus, or executive compensation plan, just for starters. Pharma companies use this method of motivation and reward. Genzyme is one business that launched such a plan for its execs.
Wiki User
∙ 14y ago
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Where can I learn more about incentive compensation?
There are many websites devoted to HR issues. Many of these sites deal with compensation and driving performance and rewarding incentive.
Utilize Incentive Compensation and Watch Productivity Soar?
A favorite tool used by managers who oversee a sales team, incentive compensation can be used in many other work situations where employees can increase their earnings based on productivity. By rewarding employees for results rather than effort, managers often notice that their staff finds creative and successful ways to get their job done. Whether a substitute for a regular salary, or an added bonus on top of a worker’s regular pay, incentive compensation usually results in higher output. In the case of sales, incentive compensation is usually set up as a bonus structure. Based on the number of deals a sales person closes, or the amount of money they bill for their employer, they are rewarded with bonus pay. Alternatives to monetary incentives can include paid vacation days, flex time, gift certificates, and any other creative rewards that managers can dream up. Not all positions define productivity as clearly as those in sales, however, incentive compensation can still be implemented. For example, customer service employees can be rewarded based on the number of clients they assist each day. In cases where quality of service is more important than quantity, incentives can be based on the customer feedback. All employers hope that they hire individuals who have an excellent work ethic and will excel at their job regardless of enticing incentives. However, it has been proven that employees who see their efforts directly rewarded do produce more. In addition, the competitive atmosphere that incentive compensation creates also drives worker output. While some companies keep employee’s productivity confidential, others pit employees against each other making it clear that those who do not perform up to par with their counterparts will not be rewarded and may be cut. The success of incentive compensation does in part depend on the nature of the business and the personality of the employees. While some people are totally turned off by a competition-driven company, others are energized by this approach to management. Regardless, a well researched and well executed incentive compensation plan will usually result in a motivated staff and a profitable business.
What is the purpose of a sales incentive compensation plan?
The purpose of sales incentive compensation plans is to influence a company's sales reps. To be successful these plans must provide strong incentives with short quotas.
What is the expectation that encourage people to behave in a certain way?
Incentive
Under communist workers fail to increase productivity because the lack an?
incentive
What does MICE stand for in Travel Industry?
Meeting, Incentive, Conference & Encourage
What is incentive bonus?
An incentive bonus is when a person will receive extra money for a job well done. Incentives are used in the workplace to increase employee morale and productivity.
What is special about incentive programs?
An incentive program is special because it is specifically formed to encourage specific actions. It is designed to promote certain activities and actions.
Why would companies have corporate incentive programs?
Companies would have corporate incentive programs in order to make their staff perform better. An incentive offered for good work could be cash or a gift or even a free holiday.
Where can one find companies that have good incentive plans?
There are many companies offering incentive plans to motivate employees to perform well. Boeing and KONE are two such organisations that offer incentive plans. Additional information about incentive plans can be found online at Forbes and Entrepreneur websites.
What is an incentive spirometer?
A breathing device that provides feedback on performance to encourage deep breathing.
How would you describe incentive compensation?
Incentive compensation is a type of payment or reward given to employees based on performance outcomes, usually tied to specific goals or targets. It is designed to motivate employees to achieve desired results and can include bonuses, commissions, and stock options.
