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| Components Of Compensation |
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Incentive Management
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Payroll Home » Compensation » Incentive Management
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In today’s strategic compensation systems, incentives forms an integral part of the performance based compensation packages. It is a challenge for organizations to formulate strategies to maintain the internal equity and external equity and provide the most competitive compensation packages to attract and retain the talented workforce. For the purpose effective incentives programs are undertaken. Employees are involved in the process so as to deliver un-biased packages to all the employees.
The compensation strategies should be effective. All the employees should be aware of the organizational goals and objectives. The methods used for evaluating employees’ performance should be fair enough and easy to understand. | |
The performance standards established should be achievable. Deserving employees should receive significant rewards. There should be always scope for improvements. Employees’ performance should be evaluated on the basis of their productivity.
Figure: Benefits of Incentives
Incentives accounts for employees’ high productivity. Today youngsters believe in performance based pay, thus incentives will help to motivate them to produce more. In the hospitality and retail industry it is the incentive that accounts for the overall package of the employee.
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