An incentive pay plan is a system a company will have to incentivize employees to perform excellently. A clear structure needs to be laid out that clearly states what employees need to do in order to earn the bonus, and it has to state what exactly the bonus is. Incentives can vary from business to business. Some companies offer workers commissions based on sales while others offer profit sharing, stock options or a lump sum monetary bonus. These plans are typically created in order to attract better employees and to retain individuals already working for the business. In order for the plan to be effective, the goals must be obtainable or else morale could go down.
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