• Skip to content
MightyRecruiter MightyRecruiter
  • Get Free Account
  • Solutions
    • Features
    • MightySourcer
    • Post free Jobs
    • Resume Database
    • Industries
  • Pricing
    • Software Pricing
    • Why Free ?
  • Resources
    • Blog
    • Customer Case Studies
    • Webinars
    • eBooks
    • Checklists and Infographics
    • Job Description Examples
  • Recruitment Guide
    • Legal
    • Business
    • Hiring
    • HR Glossary
  • Templates
    • Job Descriptions
    • Letter Samples
  • Get Free Account
HomeRecruitment GuideGlossary Terms A-ZIncentive Pay Plan
  • Legal Resources  
    • Termination Laws By State
    • Regular Laws
    • Wage and Hour Laws by State
  • Business Resources  
    • Business Closing
    • Business Finance
    • Business Tax
    • Starting a Business
    • Business Operations
    • Insurance and Liability
    • Intellectual Property
  • Hiring Resources  
    • Hiring Process
    • Wages and Benefits
    • Workplace Safety
    • Discrimination
    • Employee Termination
    • Managing Employees
    • Hiring Tips for Employers

Incentive Pay Plan

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.

Related Terms

  • Incentive Pay
  • Bonus
  • Performance Incentive Plan
  • Legal Disclaimer

    The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.

    • VIDEO TOUR
    • CHROME EXTENSION

    MightyRecruiter

    • About Us
    • Work Here
    • Partners
    • Blog

    Hiring Software

    • Features
    • Why Free?
    • Pricing
    • Free Job Postings
    • Free Job Description Samples
    • Watch Demo Video

    Support

    • Terms of Use
    • Your Privacy
    • Disclaimer
    • Resources

    Contact Us

    Monday-Friday, 8am-5pm CST
    1-844-382-1750
    recruiterhelp@mightyrecruiter.com
    Mighty Recruiter
    • Follow Us

    © 2023, Bold Limited. All rights reserved

    Powered by BOLD