Benefits Of Employees And Employees At The Workplace Is The Utilization Of Incentive Pay Plans

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Harvard Business School Professor Michael Beer stated “I think there is an implicit negotiation going on between what management wants and expects, and what employees want and expect” (Lagace, 2003). One aspect of the ongoing negotiation between employers and employees in the workplace is the utilization of incentive pay plans. Employers utilize incentive pay plans to motivate and change employee behaviors in order to prioritize behaviors and outcomes that the employer is looking for. Pay for performance appears to be a common sense solution to motivate employees. It creates a reward system for employees that is tied to job performance and meeting criteria that the employer values (Taylor, 2013). While the idea of offering financial incentives to employees appears to be grounded in business principles and ideas that have existed for a long time, they are not always successful. In order to for pay for performance incentive tools to live up to their potential in the workplace they must be crafted to meet the needs of organization as well needs of the employee, the plan must also be maintained and evaluated on a regular basis. Failure to do so can cause more harm than not utilizing one. Furthermore, there is a growing body of research pointing to the idea that incentive or rewards are not the solution for improving employee performance that they were portrayed to be. There are several different types of incentive plans “that can be tied directly to business objectives
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