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Performance and Financial Incentives
The several incentive plans have benefited both workers & employers, as they outcome in higher wages, lower labour turnover & better industrial relations & morale. Merit pay is a reward depends on how good an employee has done the assigned job. The payout is based on individual employee's performance. Performance is evaluated in a subjective pattern. Profit sharing is a plan whereby employers undertake to pay a specific portion of total profits to their employees on fulfilment with sure service conditions and qualifications. Under employee stock option strategy, the suitable employees are allotted company's shares below the market cost. The term stock option implies the right of suitable employee to buy a certain amount of stock in future at an agreed cost. The eligibility criteria might include contribution to the department/ division where the employee works, length of service, etc.
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