IWS Documented News INTERNATIONAL

IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________

Cornell HR Review

Allison A. Gordon, Jennifer L. Kaswin

Effective Employee Incentive Plans: Features and Implementation Processes

In Essays on May 31, 2010 at 6:41 pm

http://cornellhrreview.org/2010/05/31/effective-employee-incentive-plans-features-and-implementation-processes/

or

http://go2.wordpress.com/?id=725X1342&site=cornellhrreview.wordpress.com&url=http%3A%2F%2Fcornellhrreview.files.wordpress.com%2F2010%2F05%2Fchrr-2010-gordon-kaswin-employee-incentives.pdf&sref=http%3A%2F%2Fcornellhrreview.org%2F2010%2F05%2F31%2Feffective-employee-incentive-plans-features-and-implementation-processes%2F

[full-text, 6 pages]

[excerpt]

A 2007 WorldatWork survey found that 70 percent of compensation professionals believe that incentive pay is “important or very important” to the success of their organization.[1]  The economic downturn has accentuated the need to contain compensation costs by holding down fixed-based salary expenses.  To maintain competitive pay plans, an increasing number of companies are giving more employees across different job functions the opportunity to earn variable, performance-driven incentives for achieving individual and organizational goals.[2]

This paper will evaluate the effectiveness of broad-based employee incentives, identifying the features of effective plans. For our purposes, “broad-based” is used to signal that more than 50 percent of employees are eligible for this variable pay plan.[3] In addition, the terms “variable pay plan” and “pay for performance” are used interchangeably as they appeared in the original sources.

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

****************************************
Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
****************************************