January 2016
Intermediate to advanced
480 pages
20h 58m
English
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.
Companies considering various design alternatives should choose a design that fits the structure of the company. Group incentive programs are most ...