Design a Pay for Performance Incentive Awards Program



Abstract

Currently market is very competitive and due to this, retaining top performers and motivating stable performer is important. Beside this, it is also important to improve productivity and driving bottom line results needs a perfect coordination efforts. Formulating apparent organizational goals, assisting alignment of these goals and assuring employee have the require skills are the considerable steps towards developing a high performance environment within the company. The focus of this paper is to outline designing and implementing Pay-for-Performance Incentive Reward Program for all employees, including senior management and why aligning pay with performance is so important.

Introduction

Companies enjoy success in different ways such as by being profitable, competitive, and prestigious. Every company has its own vision and mission which defines the path that it has to work on and achieve all its targets and milestones. In order to achieve those particular targets set by the company, it is essential that company should keep motivating its employees through various gestures, compensations and benefits. These gestures definitely motivate the employees for their particular job and as a result, they become more productive and beneficial for the organisation. To bring all the above mentioned systems into practice properly, a human resource management helps the company. It is a system that evaluates and ranks an employee's performance in a particular span of time.

These programmes aim to encourage high performance and behaviours of each level of employees. They compensate for the personal use of concepts, principles and technical tools such as basic process compensation administration. They bring enormous benefits for the staff welfare, which eventually results positively for a company.

Discussion

Pay for Performance

Pay for performance has been termed as strategic business scheme through which they are turning more towards driving a bottom line business value. According to the recent research 42% of the organizations have set their line that improving the connection between performances rewards would result in higher productivity and much improvement in employee's performance (Broderick, Mavor, 2012).

This is basically a pay strategy in which individuals or organizational performance evaluations would have a considerable influence on the amount of pay rise or bonuses that given to employees of the company (Snell, Bohlander, 2011). When this system functions properly then the following are the results:

People that performed outstanding, they would be receiving the greatest rewards in order to acknowledge their excellent work, contribution and to further motivate them for better performance in future (Springer,2009).

People that performed on average, they would be receiving considerably slighter raises and this would encourage them for more hard work for achieving larger increase in future(Chingos, 2011).

Hence, people who did not able to make up to the line, they would not be receiving an increase in their pay or any incentive. This would entail them to further improve their performance or leave the job. Companies usually use this approach in order to motivate employees. This is the main factor that increases employee interest in the work (Ramlall, ...