What common incentive program options are available for workers?
Possible Answer: Incentive programs are special-pay programs designed to
motivate high performance. A sales bonus is a typical incentive; a bonus is a
special payment above one’s salary. Merit salary systems, on the other hand,
link pay raises to performance levels in nonsales jobs. Executives commonly
receive stock options as incentives. Further, pay for performance, or variable
pay, is a newer incentive plan in which middle managers are rewarded for
especially productive output—for producing earnings that significantly exceed
the cost of bonuses, for example. Profit-sharing plans distribute profits
earned above a certain level to employees; conversely, gain-sharing plans
distribute bonuses to employees when a company’s costs are reduced through
greater efficiency. Pay-for-knowledge plans encourage workers to learn new
skills and to become proficient at different jobs; they receive additional pay
for each new skill or job that they master.
Source: Business
Essentials, 8e (Ebert/Griffin) – Global Edition
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