Pay for Performance and Employee Incentive Systems are becoming more and more part of the current compensation landscape. Discuss their applicability in the context of individual and team performance. Identify critical success factors in the Caribbean Region
As we all study the working society around the world and the way it is structured. We are all aware that it comprises of many factors, but most importantly an organization also mainly focuses on their Compensation to employees as they offer attractive packages of base pay, incentives and benefits to attract and retain employees. Compensation encompasses the reward an organization gives to employees in exchange for the work they do, hence the reason pay for performance and incentive systems pay a vital role in this system.
Pay for Performance, which defines itself refers to an effective tool and financial reward system for employees where some or all of their monetary compensation is related to their performance and also is assessed in a specific criteria. This system is most effective when employers encourage employees to manage and improve their own performance which help employees to understand what is expected of them. Employee Incentive System is used especially in organizations to help structure motivation systems, employee skills, acknowledgements of employee successes etc.
These systems apply the benefits for Individuals & Team Respectively;
This criteria require individual goal setting and an appropriate performance appraisal system. This increases the job knowledge and skills because training skills make up the difference between abilities needed on the job and the abilities brought to the job. For example employees are assign work, through this process they translate organizational goals into work unit and individual performance goals. Training needs are identified and provide access to training opportunities, after all coaching and feedback is given to the individual.
In terms of a...