List and explain the advantages and disadvantages of incentive pay, and describe how companies can overcome the disadvantages.
There is a 75 word minimum response required.© BrainMass Inc. brainmass.com October 25, 2018, 7:48 am ad1c9bdddf
An advantage of incentive pay includes encouraging workers to be more productive and allowing the company to enjoy greater productivity. Incentive pay is linked to having employees perform tasks in the manner that will most benefit the company, based on their needs. So, incentive pay serves to link workers more to the organization's goals and greater mission by providing a clear standard and expectation of employee performance. Furthermore, it aligns ...
This solution explains the advantages and disadvantages of incentive pay, and how companies can overcome disadvantages. Includes 200 words and APA formatted references.
Strategic Compensation Text About Person-Focused Pay Programs
1. Discuss the differences between traditional pay systems and incentive pay systems. Which system would you prefer to be used at your company? Explain your choice.
2. Explain what constitutes person-focused pay and the advantages and disadvantages for employees of these types of programs. How do these programs vary from merit based programs?
3. Employers can use a variety of individual incentive programs to contribute to their compensation strategy. Which of the four types of individual incentive plans would you prefer? Explain your choice. What are the advantages and disadvantages of the individual incentive programs? Do you prefer an individual incentive program or a group incentive program? Explain your choice.
4. Why do companies adopt person-focused pay programs? What are the four models of person-focused pay programs?
Martocchio, J.J. (2013). Strategic compensation: A human resource management approach (7th ed.). Upper Saddle River, NJ: Prentice Hall.