What is the plan of incentive compensation?
Motivation compensation plan is a program that offers reward or recognition in exchange for performance. There are several varieties of these rewards and recognition plans. Commonly recognized business strategies, such as customer remuneration programs or commissions paid to employees, are examples of incentive compensation plan.
Customer reward programs are a common form of incentive compensation. These programs are designed to affect customers' behavior or support purchases of a particular product or service. This form of a compensatory plan may include incentives for refund, certain sales or promotion events or customer discounts for new customers' recommendations. The basic goal of this strategy is to create an environment in which the customer wants to buy a product or promote a service to receive a reward. It is a common strategy between companies and credit card retailers that support purchasing behavior.
In the business world, incentive programs for theme are often usedACI employees. When the employer wants to strengthen employees' morale, it can present a motivational compensatory program to motivate employees. Incentives sometimes include non -monetary rewards, such as employee and family events, a company for a company or other prices. In some cases, one -off cash rewards may also be offered. A common example is the employee of the month used by many companies.
Motivation compensation plan can also be used to maintain employees. In businesses that experience a high level of employee turnover, management may decide to implement the programs of maintaining employees. Employees who remain in the company for a certain period of time can be offered incentives in the form of an increase in salary, cash bonus or public recognition of the service and loyalty to the individual. Companies that use this type of motivational program often come from industrial OTwo, where competitive G is tending to accept experienced employees, among other things, companies.
Another form of plan of motivational compensation is the program for motivation of employees. Sometimes retail companies give employees the opportunity to benefit from proving sales capabilities by offering commissions. The Commission is a cash reward for sale. In addition to commission -based programs, some corporations also offer other incentives, such as awards ceremony, travel opportunities or cars. One of the well -known examples of a company using this type of incentive compensation plan is Mary Kay Cosmetics. Mary Kay gave each of its top five retailers in 1969 a pink Cadillac and continues to offer incentives to employees with a high level of sales.