The use of Performance Incentives and Merit Pay
For a business to maintain dedicated and hardworking employees, the company should have a tactical plan in place that should look into benefits rewarding staff for their dedication to the enterprise. The company should design an incentive system, and it should be easy for the employees to under how it works. The incentive system is a system that motivates workers to work hard and help the company to achieve the goals Companies use Merit pay, a system that companies use to pay the employees based on their individual performance. The primary objective of Merit pay program is to connect the payment to employee’s performance in a systematic manner. Hard working employees should be rewarded more than employees who contribute less input in the assigned work.
Laws Related to Benefits and Pay Programs.
The Law requires that employers should provide some compensation programs and benefits to their employees. Benefits and Pay programs are vital to the workers because these programs contribute significantly to the employees and their family welfare. The following Laws relate to the Benefits and Pay programs: The Fair Labor Standards Act of 1938 (FLSA) and the Federal Unemployment Compensation Act (FUCA). The (FSLA) is the federal statute for the US and all the US territories. (FSLA) Ensures that minimum wage, overtime pay, recordkeeping, for full-time, and part-time workers in the private sector and the government is applied accordingly. The minimum wage in Texas is $7.25, so by law no employee should be paid less than the minimum wage because it is against the law. The FLSA also states that employees who work more than 40 hours in a week must be paid overtime. The (FUCA) says that companies should provide unemployment compensation to the workers who lost their jobs (Texas Administrative Code, 2007). The law requires one to meet all the requirements in order for them to qualify for Unemployment compensation. The three...