Pay for Performance

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Traditionally, all incentive plans are “pay-for-performance” plans. They pay all employees based on the employee’s performance (Dessler). Compensation is a primary motivator for employees. People look for jobs that not only suit their creativity and talents, but compensate them both in terms of salary and other benefits accordingly. Compensation is also one of the fastest changing fields in Human Resources, as companies continue to investigate various ways of rewarding employees for performance. It is very important for organizations to make sure that the incentive plans are well structured to need the needs of the employee and in return make the organization profitable. Giving incentive pay to employees that has not earned them destroys…show more content…
"Employers can leverage a variety of financial and nonfinancial rewards to engage employees through tough times when budgets are tight, but communicating and reinforcing those messages through a variety of channels is critical."(HR Focus). How do you keep an employee motivated when there is nothing extra to give them for doing a job well done? Often times just a simple recognition of a job well done will keep an employee motivated. In my office we use to have a program called “Shout Outs”. Being that funding was tight and there were no pay raises being given out due to budget cuts our Deputy Director came up with this program. Giving employee’s recognition for going above and beyond to get a job done. It was amazing how the employees reacted to this program because so many people were never given credit for a job well done. What I found out through this program was that when people are given credit for going a great job they are willing to go that extra mile above and beyond to make sure they job is done and it is quality work that is produced. Often time managers would take the credit for a job they did not perform and were given incentives and they ones that had really done the job was left in the cold. Organizations have to make sure that when incentives are given out that they

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