In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman discusses the different forms of incentive pay that can be found within an organization. These forms of incentive pay include:
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- Short-term incentives: Generally, short-term incentives are given to employees within a year’s time
- Long-term incentives: Long-term incentives usually focus on job performance goals beyond a single year (e.g. growing a company’s market share)
Within an organization, short-term incentives are more common. The incentives need to be directly linked to the bottom-line of the organization.
Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He can be reached at info@dankleinmanconsulting.com.