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Strategic Compensation: A Human Resource Management Approach, 9/e
book

Strategic Compensation: A Human Resource Management Approach, 9/e

by Joseph J. Martocchio
January 2016
Intermediate to advanced content levelIntermediate to advanced
480 pages
20h 58m
English
Pearson
Content preview from Strategic Compensation: A Human Resource Management Approach, 9/e

Designing Incentive Pay Programs

  1. 6 Summarize considerations when designing incentive pay programs.

When designing an incentive pay plan, HR professionals and line managers should consider five key factors:

  • Whether the plan should be based on group or individual employee performance.

  • The level of risk employees will be willing to accept in their overall compensation package.

  • Whether incentive pay should replace or complement traditional pay.

  • The criteria by which performance should be judged.

  • The time horizon for goals—long term, short term, or a combination of both.

Group versus Individual Incentives

Companies considering various design alternatives should choose a design that fits the structure of the company. Group incentive programs are most ...

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Publisher Resources

ISBN: 9780134320540