incentive pay scheme

incentive pay scheme

any form of PAY system which rewards an employee or group of workers in such a way as to induce increased effort or production. Such reward systems include PIECEWORK PAYMENTS which are geared to an individual's or group's effort and output; BONUS SCHEMES which provide bonuses for reaching stipulated levels of production or sales;

PROFIT-RELATED PAY systems and PROFIT SHARING schemes which provide for employees to receive a proportion of the firm's profits. See INCENTIVE BONUS SCHEME, PERFORMANCE-RELATED PAY, EXECUTIVE SHARE OPTION SCHEME, LONG-TERM INCENTIVE PLAN, EMPLOYEE SHARE OWNERSHIP PLAN, PRINCIPAL-AGENT THEORY.

incentive pay scheme

any form of PAY system that rewards an employee or group of workers in such a way as to induce increased effort or production. Such reward systems include PIECEWORK PAYMENTS, which are geared to an individual's or group's effort and output; BONUS SCHEMES, which provide bonuses for reaching stipulated levels of production or sales; PROFIT-RELATED PAY systems and PROFIT SCHEMES, which provide for employees to receive a proportion of the firm's profits. See EXECUTIVE SHARE OPTION SCHEME, LONG-TERM INCENTIVE PLAN, EMPLOYEE SHARE OWNERSHIP PLAN, PRINCIPAL-AGENCY THEORY, AGENCY COST, TEAM PRODUCTION, PRODUCTIVITY, X-INEFFICIENCY, SUPPLY-SIDE ECONOMICS.
References in periodicals archive ?
Pirc said the targets under its incentive pay scheme for top bosses were "not sufficiently challenging" and that departure bonuses in contracts were not appropriate.
In addition, through the performance incentive pay scheme, staff can share in the Society's success and we operate a career stream structure where every role is defined and states the competencies required to achieve it.
We ensure that we pay competitive salaries and through our performance incentive pay scheme, staff share in the Society's success.
The RTWPBs issue advisories on productivity incentive pay schemes as reference of workers and enterprises in the implementation of productivity improvement and gain-sharing programs.
That should generate some good newspaper headlines1--it usually does (I have always thought that extending the incentive pay schemes throughout the organisation could resolve this issue but I acknowledge it is harder than it looks).
Levine and Shaw hold a plea for incentive pay schemes to be installed with quality improvement plans, a view that is at odds with those of early TQM authors.
there is a low and declining use of incentive pay schemes (as compared to traditional fixed-wage forms of compensation);
First, linking CEO compensation to the performance of the firm and incentive pay schemes have been widely used in the West.