Does incentive pay have a future?

摘要

when pay cuts were widespread, incentives were also held for cash reserves. Some incentive plans failed during that intense Covid era as business survival came first. Other programmes quickly pivoted towards more team or collective goals rather than position specific goals. Remuneration packages can be made up of guaranteed and non-guaranteed components. Guaranteed pay is the annual amount the organisation pays for the position as base salary plus any fixed benefits, and it isn't contingent on doing a good job. By comparison, pay that is not guaranteed and is contingent on individual, team or organisational performance is provided by way of an incentive plan. That means participants can earn more when they achieve more, and the amount varies based on reaching certain levels of achievement. Bonuses, like incentives, are also not guaranteed and typically a one off, discretionary payment. They may be paid as a 'thank you' or for a special event.