Incentive Pay For Job Performance

“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.

Individual Incentive Plan: They reward their employees who hard work hard to achieve their goals conducted independently. For the company to have such a program works well in motivating their employees to want to succeed. By having the incentive programs is a much easier way for Capital One to assess each employee performance individually. Employees would standout more in area in which they are much more industrious, while area that they are lacking would be much more outward.

You can alleviate many of these issues by sticking to short-term plans-three to six months. Better still, consider a non-monetary incentive plan. Non-monetary awards can work well, and maybe better than cash awards, because they are perceived as more spontaneous and

Pay for performance is an incentive program. A way to compare is when in sports a player can make more money for doing better or meeting certain goals. So if a pitcher pitches a no-hitter he may receive an additional bonus on top of his salary. Pay for performance concerning health care is looking at not only success rates but overall outcomes. This means Patient A has a surgery she comes through without complications, and she heals quickly, is discharged and when she comes back for a follow-up everything is moving along as the physician plan. This is a good outcome. Now if the same patient, acquires an infection,does not heal in a reasonable amount of time or dies then the outcome is not favorable and pay for performance is affected. because pay for performance is difficult to measure in long term situations many times, the outcomes are measured in sections such as various components that create a patient’s overall health rating. for instance, Patient B is 300 lbs suffers from high blood pressure, high cholesterol, and diabetes pay for performance would look at each component and see if the health services being provided are aiding in the betterment of the patients health. At the core pay for performance is more about accountability, keeping medical professionals abreast of what is really going on with patients regardless of income or background.

The pay-for-performance incentive compensation program is designed to measure the variations of the healthcare professional performance, as well as motive them in improving the efficiency and the quality of care provided to patient by decreasing medical errors (Abduljawad & Al-Assaf, May 2011). Healthcare professional are given incentives based on good medical outcome and exceptional performance. It is an effective compensation program, because it improves retention, as well as attract new healthcare professionals to the organization; therefore, by giving healthcare professionals an incentive, they are more likely to remain engaged with their profession, because the feel satisfied with their work and that their skills and performance is valued

Managers and supervisor design compensation packages to promote team work and team building among co-workers. Managers also use incentives programs to entice recruitment of new candidates. The purpose of these incentive is to hire talented candidates through employment relation such as recruiting and selection, by shaping the flow of workers through performance evaluation, training, career advance, termination and labor relation (Martocchio, 2011).

Clay County is located in the far western part of the state if North Carolina. The country is part of the tri-state area of North Carolina, Georgia, and Tennessee. This tri-state area is home to over 5 county school systems all within a 20 to 40 mile driving radius of each other. Clay County specifically borders the state of Georgia and is only about 20 miles away from the Tennessee boarder. Due to the location of Clay County Schools the district finds itself recruiting and competing for quality teachers each year from the surrounding areas. Filling teacher vacancies is not as much of a problem as retaining teachers for more than a year to two. Good teachers make a difference in student achievement,

Incentive pay, also known as "pay for performance" is generally given for specific performance results rather than simply for time worked. While incentives are not the answer to all personnel challenges, they can do much to increase worker performance. (Billikopf) Performance pay has various names: merit pay, pay for performance, knowledge-and-skill- based pay, or individual or group incentive pay. (Delisio)

A reward is a high extrinsic motivator. The reward can be monetary, gift certificate, day off with pay, a two hour lunch, or working for two hours on anything but work. All entice performance and competition in the workplace. A gold star, being the teacher’s helper for a day, no daily

In its essence, an incentive is a deliberate proposal calculated to make a person choose a certain action. Thus, the reason why incentives are so popular in society is because everything and

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

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.

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

Pay for performance is to link employees’ salary or salary increase to his or her performance. It seems to be a reasonable or attractive idea but it often does not work well in organizations. Please use at least 4 motivation theories or models to explain why pay for performance may not work as expected—particularly in government and nonprofit organizations.

There are three main types of incentive plans an organization can be practiced. These are individual incentive plans, group incentive plans and company-wide incentive plans. Moreover, suggestion plans and positive reinforcement programs can be considered as incentive plans (French, 1990). Flexible reward systems linked to an individual employee performance called individual incentive plans. Merit pay, piece-rate pay, bonuses and special