Describe the long-term incentive programs used in the healthcare industry. Clearly state the key elements essential for its success.
Identify programs that are used mainly for the senior executives in an organization.
Research various long-term programs that are used in an organization. Examine key elements essential for its success.
Some of the key elements of success for long term incentive plans, especially in a healthcare industry are as follows:
First of all, it is essential for a healthcare company to ascertain which type of incentive plans is particularly suitable and beneficial for employees at different levels, ie, junior level, middle level and senior level or executive level employees. For example, junior employees involved in the sales function in the pharma companies, who are generally very young and are most of the time on the move have different perceptions with respect to cash versus non cash incentives as compared to executives at senior level. Even though it is not possible for a large company to ascertain the individual preference of each employee with respect to suitable incentives, it can somewhat customize incentive plans on the basis of certain characteristics such as his age, salary level and position in the organization. Gen X employees or young people attach more value to incentives that incorporate recent technologies such as handheld device awareded to a high perfoming sales person. Similarly, senior employees attach more importance to recognition and financial payouts.
Secondly, it is very important that incentive plans should be ...