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Incentive compensation can motivate employees to meet and exceed business targets by strategically linking their performance to rewards.
Attractive financial incentives can attract and retain top performers and drive sales, production, and transformation improvements. Successful incentive compensation plans involve self-funding since employees receive their bonuses only after meeting their targets.
However, if not correctly designed or managed, they can also spell disaster, as Wells Fargo experienced. This article provides the key details and examples of incentive compensation and discusses how to develop fair, sustainable incentive compensation plans.
Contents
What is incentive compensation?
The pros and cons of incentive compensation
9 examples of incentive compensation
Differences between short-