Product Overview
Incentive Compensation
Distinguishing between incentive types (and implementing an incentive-based comp plan) matters to your business. Why? Because choosing the right incentive package motivates your employees.
Benefits of Adopting an Incentive Compensation Plan:
-Incentive compensation plans allow organizations to focus attention on desired performance and behaviors.
-Incentive pay is tied to achieving specified performance, eliminating entitlement uncertainty.
-Companies are motivated to plan ahead and identify expectations.
-By putting a portion of the compensation “at risk,” organizations can control fixed costs associated with salary increases.
-Incentive pay is not typically included in calculating benefits, which can save companies money in the long run.
-Incentive compensation programs help organizations recruit better candidates, as prospective employees recognize the opportunity to earn higher compensation -based on their contributions.
-Incentive pay programs allow a company to tie pay to results.
-Since incentive compensation programs are typically designed to be “self-funded,” funds are available when goals are achieved.
-Including incentive pay as part of the overall compensation package allows companies to remain competitive within their sectors.
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