Incentive wage plan

An incentive wage plan offers an increased level of compensation when employee performance exceeds a threshold level. These plans are intended to incentivize employees to become more efficient and effective in completing their designated tasks. A plan could involve either an increase in output or a reduction in expenses. These plans can be quite effective for improving company performance, but only if incentives are set at a level that employees consider to be achievable.

Related Courses

Human Resources Education Bundle 
Human Resources Guidebook 
Payroll Management