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Implications for further research on employee motivation
Employee motivation
Employee motivation
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BONUS PAY 2 By definition, bonus pay is a term that describes pay above stated compensation and may include performance-related pay. Bonus pay, as a part of a merit pay system, can provide rewards for workers who perform their jobs at, above and beyond measurable criteria as stated by policy makers. Used predominately in service-oriented careers such as teaching or sales marketing, bonus pay can richly reward employees for hard work but can also create various work-related issues at all levels of the organization. In this paper, I will describe my personal history of bonus pay to the reader, discuss a recent article published about bonus pay, explain the significance of bonus pay to employees and organizations alike, take a scriptural view on the topic and introduce my final view on the topic. I was introduced to the concept of bonus pay first-hand when I was hired on at Convergys in Longview, Texas in June 2013. Bonus pay was awarded to employees at Convergys for meeting a variety of pre-assigned goals. These goals were updated monthly by both our organization as well as that of the company we were subcontracted to, AT&T. As a call center employee, we were required to take calls and assist AT&T customers in all aspects of their cellular phone services, broadband internet services and cable television services. We were expected to treat our customers with the upmost respect and give them the best possible solutions to fit their needs and desires. At Convergys in January 2014, bonus pay was viewed as a bonus incentive in addition to our base pay to entice us to go above and beyond the normal of our scope. Incentives were offered based on our performance in a number of different sco... ... middle of paper ... ...nd cons of bonus pay and merit pay. While bonus pay is good and can reward those who do very well, it is not a necessary reason for me to be a good and valuable employee at any organization. Bonus pay is a good and integral part of any merit pay system. However, it is not and will not be a reason for this employee and it will be just that, a bonus, not a driver or an incentive in my future employment. Works Cited ESV: study Bible: English standard version.. ESV text ed. Wheaton, Ill.: Crossway Bibles, 2007. Print. "Salary Reports, 2013 Wage Forecast, Market Compensation | WageWatch Ibrief Blog." WageWatch Ibrief Blog RSS 092. N.p., 30 Jan. 2013. Web. 15 Apr. 2014. . Snell, Scott, and George Bohlander. Managing Human Resources. 16th ed. Mason, OH: South- Western, 2013. Print.
Employees protested, “that supervisors should have received a reduced bonus because they were not working as hard as they are and the company might be playing with the numbers” (Beer & Collins, 2008 p.6). A beneficial system for the new Scanlon Plan is to rearranged payout count. This will help to regain trust amongst employees and management. Equity Theory stresses integrity to all compensation arrangement and if this is effectively executed, then this will resolve the mistrust issue that employees have with their management team. The rewards should not be paid on a consistent month-to-month basis, instead, on a settled proportion plan, which gives rewards "each nth time the right behavior is demonstrated" (Bauer and Erdogan, 2013, p. 112). Traditionally, this would imply that workers are paid reward each time a specific measure of cash in permitted payroll is met. “The current permitted payroll is at 38% of sales value” (Engstrom, 2008). This requires no change. Instead, when Engstrom comes to a permitted payroll of one million dollars, then 10% of that sum should naturally disbursed to workers as rewards. This tackles numerous past issues with the Scanlon
Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy and Practice vol. II (4), 111-121.
Manfred, T. (2013, September 5). Two Charts that show how Badly NFL Players Get Paid . Retrieved November 16, 2017, from businessinsider: http://www.businessinsider.com/charts-expose-how-badly-nfl-players-get-paid-2013-9
"Police Officer Salary." Job Search | One Search. All Jobs. Indeed.com. N.p., n.d. Web. 11 Feb. 2014.
An incentive or reward system refers to a program designed by an organisation to reward high performance and motivate workers on an individual and group basis (Corby et al. 2009, p. 2). Rewards are useful to a company operating in a competitive market. Although used interchangeably, rewards and recognition where the former can be monetary or non-monetary but has a cost to the company, while the latter is meant to offer psychological reward, for instance, oral public recognition or end of the year award. While the company does not provide financial incentive, it provides non-financial in the form of cars for its Sales Division consultants. This improves the working condition of the employees, but it does not improve their financial stance. Wright (2004) notes that some employees are more concerned with status, for instance, an executive desk, attractive office or business card (p. 76). Such incentive make the jobs and company attractive.
Patricia K. Zingheim, Jay R. Schuster, and Marvin G. Dertien(2009) Compensation, Reward and Retention Practices in Fast-Growth Companies, Article published in WorldatWork Journal, Volume 18 No.2, pages 22-39
Employee incentive plans go by many names. Successful company incentive programs will accomplish exactly what you want them to do if you plan them properly. In general, studies have shown that individual incentives are more effective than group incentives. Incentive pay, also known as “pay for performance” is generally given for specific performance results rather than simply for time worked (Dessler, 2011, p. 212). While incentives are not the answer to all personnel challenges, they can do much to increase worker performance (Dessler, 2011). Some kind of incentive pay is an important part of any compensation plan. Incentive pay shows appreciation and creates a sense of participation in the company's well-being that straight salary dollars, though sizeable, don't communicate (ABS, 2010). A well-designed incentive-pay plan can also help pull people together, help point them in the direction you want them to go, and give that extra push that every company needs in today's competitive environment (ABS, 2010).
Leaders can determine the allocation of valued incentives such as promotions, bonuses, raises, attractive work assignments, time off and compliments. The challenge presented by the use of reward power is that some of the rewards may have limited perceived value to the employee. A compliment of a financial payoff may not be a sufficient for an employee. Moreover the ethical conduct may not be observed by top leadership. Finally some of the rewards, such as salary increases or promotions, may be controlled by or more heavily influenced by, direct supervisors within the organization. If these supervisors do not share the same values as top leadership, employees are likely to be rewarded for behaviors using performance metrics more salient to the
Remuneration management is defined as the sum received for an employment or service delivered, this includes the money received on a monthly basis as well as benefits given as rewards (investopedia,para.1 ). Individualism need to be taken into account when implementing these remuneration structures or reward schemes, equal pay plays a role in balancing earnings among the diverse workforce (Shen, Chanda, D’Neetto and Monga,2009,p.241). The Woolworth’s Holdings uphold remuneration policies which have the purpose of making sure to attract and hold on to the best talent, that they are congruent with the strategies of the company and are the determinants of performance during the short and long phases. The policy considers the board members and the employees. This policy manages employees of the company by giving...
Motivation is the process of getting someone to act on a particular situation. According to (Adelhardt, S, K. 2015, December 2) lack of motivation in the workplace is the most problematic subject for all managers, because it leads to decreasing productivity, performance and yet it increases the chances of employee resignation. Many employers suppose that managers these days are struggling to motivate their employees due to lack of significantly vital experience as well as knowledge in the employee engagement developing process. One of the successful strategies that managers can use to increase employee inspiration is by offering an attractive remuneration and benefits to their employees. Remuneration and benefits such as an extrinsic bonus
There is considerable debate over merit pay and the effect it has on employees within an organization. Psychologists believe merit pay is related to the incentive theory of psychology; people respond to rewards and with the proper motivation, it increases performance (Cherry). Employers consider merit pay an effective tool and a form of competition strategy for motivating employees to achieve positive performance outcomes. Many employers ignore the fact that incentive plans may motivate some individuals while others have high work ethics and do not need motivation. The intent of this paper is to discuss merit pay used by companies, the motivational factors on employees to reach high achievement, and the challenges that employees face due
Currency Fluctuation, What is Currency Fluctuation, 2014. Available at: http://www.wisegeek.org/what-are-currency-fluctuations.htm Retrieved at 6th April 2014
Smith, J. (2013, april 23). The Best and Worst Jobs for 2013. Retrieved october 23, 2013, from Forbes: http://www.forbes.com/sites/jacquelynsmith/2013/04/23/the-best-and-worst-jobs-for-2013/2/
For an instance, a sales executive is rewarded if that person has achieved a certain number of volumes of sales. This is more like the concept “Profit Sharing”. However, more senior executives are rewarded based on the overall performance of the company rather than based on their contributions. For an instance a CEO will get a huge bonus if a company meets its profit targets for the year. In both cases, employees get motivated to achieve these objectives and receive the employee compensation they are entitled for. This automatically creates a decisive and a dramatic increase of effectiveness and efficiency of the
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay