Some would argue that incentives are the key to retaining and attracting employees. It has been noted that there are various types of incentive plans. Discuss the advantages and disadvantages of individual incentive plans, team incentive plans, variable-pay plans, and group incentive plans. Provide examples of each plan.
The advantages of individual pay plans are that they relate pay to performance of individual. Further, they lead an equitable distribution of compensation. Individual incentives help motivate individuals. These are suitable for individualistic culture. In case of sale, commissions are used as incentives to motivate sales employees to work more efficiently. The sales persons who are driven by income go after more prospects and work more diligently. The disadvantages of individual pay plans are that they cause conflicts among employees. Perceived inequity can reduce productivity of sales people. Further, in case of other workers the subjective judgment of employee can lead to injustice. Such incentives breed resentment. Example, sales of ...
The response provides you a structured explanation of different types of employee incentives . It also gives you the relevant references.