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/
