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.