CompensationLong Term IncentivesSimulated EquityAltenative Approaches Annual IncentivesAltenative Approaches Team Based Rewards

Traditional Compensation Plan Designs Versus Incentive Plans

 
Traditional Compensation Plan Designs are ineffective because:As a result, traditional compensation plan designs have:
  • Pay levels are determined to fit the needs of employees and the control needs of managers.
  • Organizations pay what they think is enough to get the person they want.  If an employee wants more, he or she complains, demands, or threatens the manager.
  • Increases in pay or bonus awards are determined by the manager on an after-the-fact basis.
  • As the organization becomes large of complex, conflicts and favoritism result.
  • Fallen short of building corporate values
  • Not integrated with other business strategies and systems
  • Not produced work environment collaboration or teamwork

 

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