Incentive Schemes

INCENTIVE

Incentives are monetary benefits to workers in recognition of their outstanding performance in their job.

According to Dale Yoder, ” Incentive wages relate earnings to productivity and may use premiums, bonuses or a variety of rates to compensate for superior performance”.

There is a number of incentive plans used in enterprises or industries, There are both individuals as well as group-based incentive plans.

ESSENTIALS OF A GOOD INCENTIVE PLAN

A good incentive plan encourages workers to put in their best to do the job that they are assigned to. Some of the essentials for a good incentive plans are as follows,

  • Suitable Climate in the organization
  • Workers participation with management
  • Simplicity of the plan
  • Equitable opportunity to every employee
  • Scientifically set standards
  • Minimum guaranteed wages
  • Stability of the plan
  • Follow up on the plan.
factors influencing wages and salary administration

Factors Influencing Wage and Salary Administration

types of incentive plans

Types of Incentive Plans