compensation management

Respond to the following in separate paragraphs:
Put yourself in the position of an HR manager of a large research and development facility. The CEO is concerned about rising labor costs. The most recent employee opinion survey showed employee satisfaction with their compensation as low.
The CEO is considering revamping the incentive pay program. He’s not sure whether a person-focused incentive plan or a team-based incentive plan would best address the challenge of rising labor costs and employee satisfaction:
What are the pros and cons of each of these incentive play plans?
Which program would you recommend to your CEO that would best meet his goals?Provide the rationale for your explanation.

Post comment to another student’s post below:
Hello everyone,
Pros of Individual Incentives
a. Employees are motivated to perform at a higher level.
b. Individual incentives help with employee satisfaction, which leds to low turnover rates.
c. It can help with higher and quality productivity.
Cons of Individual Incentives
a. High employee turnover in low-performing team members.
b. Employee morale and behaviors can change in a negative way.
c. Conflict between employees.
Pros of Team-based incentive plan
a. It can help with group performance and tasks.
b. It can improve team morale and energy.
Cons of Team-based incentive plan
a. The team is rewarded as a whole, even if everyone isn’t pulling their weight.
b. Disagreements can occur if everyone is not on the same page.
After examining all these points, I suggest that management use Individual-based incentive plans. Individual-based incentive plans will encourage employees to work individually to complete tasks on time. If individual job satisfaction exists, employees will perform at their highest to meet the company’s goals, which leads to organizational profitability and financial growth.

× How can I help you?