How Incentive Pay Affects Employee Engagement, Satisfaction, And Trust

At work, motivation can be encouraged using many methods. One such method is through incentive pay. However, the big question is this: what kind of incentive is the most effective? Is it performance-based incentives or is it profit-based incentives? The results of new research are in, and they show that more positive effects are associated with performance-based incentive pay.

Key Takeaways:

  • Motivated, productive employees are crucial for organizational success, regardless of company size, industry, or corporate strategy
  • Offering employees performance-based incentive pay is one common approach, and it usually takes one of two forms
  • Bonuses are offered to individuals based on assessments of their performance, or bonuses are offered as organization-wide incentives, such as profit-related pay or share ownership.

“Offering employees performance-based incentive pay is one common approach, and it usually takes one of two forms: bonuses are offered to individuals based on assessments of their performance, or bonuses are offered as organization-wide incentives, such as profit-related pay or share ownership.”

http://www.ceo.com/strategy/how-incentive-pay-affects-employee-engagement-satisfaction-and-trust/

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