Advantages And Disadvantages Of Non Cash Incentives

“Incentives are the cornerstone of modern life”(Levitt and Dubner 12). Levitt and Dubner once mentioned in their book “Freakonomics”. According to Oxford dictionary, incentives are something tends to incite to action or greater effort, as a reward offered for increased productivity (“incentives”). In business field, incentives are something given by bosses to encourage their employees to endeavour in bringing benefits to their business. For a simple example, the employee who hits the monthly or year sales target will get cash or prizes as incentives. Apparently, these incentives are something that motivates employees maintains their great performance and also to motivate other employee, whoever wants to get the incentives, work harder.

Managers in many cases are presented with sales incentives in a retail environment. These incentives may range from free products, to cash prizes, to trips, bonuses, etc.

Serious issues with incentives also include employees telling their superiors that everything is under control when it isn?t, just to save their bonus. Kohn then states that ?There are very few things that threaten an organisation as much as a hoard of incentive driven individuals trying to curry favour with the incentive dispenser? (1993, p.56).

Give contests to the workers between each other and give points to the workers for whatever good things they have done and also must deduct points when they do not do well suppose for example when a worker keep absenting themselves must deduct points for every absence so the staffs will turn up every day and they will be motivated to turn up for work for everyday and put in such a way that that the staff who earns the most points will get rewarded with the most bonus and that will motivate the staffs to do good

Incentives give better options to companies, and can help motivate or create better environments. In this text from an incentive brochure states “Travel is the most glamorous and promotable of all of the award options, with around 40 percent of incentive users choosing it. However, even more than merchandise, it’s a challenge to plan and manage. There are site inspections to be made, travel logistics to arrange, and meals, and entertainment that will please everyone”(Reward 2). The incentive is

The right compensation program will depend on the organization’s business strategy and goals. To achieve these, an organization must recruit and select the best possible employees. To attract such employees, there must be an attractive compensation plan. Competitors will be offering different payment options, this may be based on pay rate or special perks, and a company’s stock options. Organizations must be aggressive yet reasonable to compete with competitors. Retaining and encouraging employees to perform at their best may be achieved through an immediate incentive award

The sales department is the heart of every company. A company depends on the sales of their products. The success of the sales department is imperative to the continued growth of a company. In order for a sales department to experience success, the company must find new ways to motivate the employees on a continuous basis. An excellent way to motivate the employees is to provide incentive programs or total rewards programs. These incentive programs

There are five major components of job satisfaction, one being monetary benefits (Ghillyer 2010). According to Ghillyer (2012) an employee’s behavior towards their pay may affect their work performance. The issue that arises with employee motivation is that management is unable to satisfy all (Ghillyer 2010). This becomes an even larger problem when employees being joining unions, resigning and being frequently absent (Ghillyer 2010).

6). Thus, employees feel as if their effort is not leading to the expected rewards, contributing to the lack of motivation.

Consistent and methodical communication is necessary when implementing an incentive pay plan. It will ensure employees understand what is expected of them while decreasing the likelihood

Contingent rewards refer to the rewards used to give those employees who meet their specific goal. It serves as the employee’s reinforcement for effectively accomplishing a specific task or meeting a certain goal on time. This may also be a positive reinforcement for a job well done (Smith, 2004). Contingent rewards support the reinforcement theory of motivation, in terms of which performance-relevant behaviors will increase in frequency if rewarded (Spector,

For these reasons incentive stock options have been used as a way to obtain employees at lower wages (Franklin and Stevenson, 2).

Extrinsic rewards could be a bonus, a raise in pay, gift certificate, free merchandise from fellow organizations.

1. Incentive compensation is a major practice that has continually been adopted by healthcare organizations, especially for managers. Most of these organizations use this tool as a means of rewarding employees financial for outstanding performance. Generally, incentive compensation involves the use of monetary reward for managers to attain specific established goals. Therefore, incentive compensation can be a motivational tool that benefits health care managers and the entire organization because it enables managers to achieve greater compensation while promoting organizational productivity. As the Chief Executive Officer of a hospital, I would design an incentive compensation program for my management team by aligning the financial rewards with business objectives and people costs. This will involve the use of a comprehensive approach that examines basic pay, health benefits, incentive opportunities, and retirement programs. The alignment of the compensation program is geared towards promoting organizational productivity and employee motivation.

Today, competition between the businesses is extremely high thus companies need to find ways to be competitive. Organizations prepare the best market strategy to increase the company performance and the ways to keep their employee motivation on the highest level to perform well within the competition. At that time, several incentive pay programs play an important role for every organization to perform well within the competition.