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Incentive plans explained in this solution
Incentive plans are rewards established by employers to boost productivity. Employers feel that employees will become more committed to fulfilling an organization's expectations. Incentives are also a symbolism of appreciation for employees that meets and exceeds organizational expectations, thus maintaining high quality performance levels.
Incentive plans are used as a motivator in most corporations. There are two types of incentives that organizations utilize such as monetary and non-monetary incentive plans. "Companies use a variety of techniques to motivate employees. Keeping motivated employees is the best way for companies to maximize work efforts, increase productivity, and accelerate profits. Large companies may use a mixture of monetary and non-monetary motivators. Bonuses, pay increases, and commissions are all examples of monetary motivators. An example of a non-monetary motivator would be recognition." (Phoenix Business, 2010). Incentive plans can be cost effective; however each plan implemented must be suitable for the work performed. Incentives are one of the most effective forces in enabling organizations to reach objectives, mainly because incentives are a venue that drives motivation. Performance measures are heightened when employees are motivated to increase productivity.
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