Strategic Focus On Compensation And Benefits
One strategic element of compensation and benefits is incentive pay. Incentive or variable pay rewards employees for partially or completely attaining a predetermined work objectively (Martocchio, 2020). Martocchio (2020) defines incentive pay as compensation other than base wages or salaries that fluctuate according to employees’ attainment of some standard, such as pre-established formula, individual or group goals, or company earnings (Martocchio, 2020). These pay systems are based on three underlying assumptions: (1) individual employees and teams differ in how much they add to the company; (2) the company’s performance depends on the performance of individuals within the company; and (3) a company needs to reward employees based on performance to attract, retain, and motivate high performers (Martocchio, 2020).
According to Pendleton and Robinson (2017), many companies and workplaces are implementing multiple pay incentives to drive employee performance (Pendleton & Robinson, 2017). Numerous studies suggest that multiple pay incentives may be more beneficial than a single pay incentive, largely because one incentive’s positive elements can counteract another’s negative elements (Pendleton & Robinson, 2017). Additionally, multiple pay incentives allow employee efforts to be spread across a range of desired tasks, whereas a single incentive may cause focus on a singular task. Long et al. (2012) state that approximately 35% of U.S. companies employ some form of individual monetary incentives, and 15% of companies offer pay incentives to groups of employees (Long et al., 2012). As it turns out, many studies suggest that pay incentive programs within an organization help increase overall employee productivity and on-task behavior (Long et al., 2012).
Long, R., Wilder, D., Betz, A., & Dutta, A. (2012). Effects of and preference for performance pay: An analog analysis. Journal of Applied Behavior Analysis, 45(4), 821-826.
Martocchio, J. J. (2020). Strategic compensation: A human resources management approach(10th ed). Boston: Pearson.
Pendleton, A., & Robinson, A. (2017). The productivity effects of multiple pay incentives. Economic and Industrial Democracy, 38(4), 588-608.
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Please identify one strategic element of compensation and benefits. Discuss it in depth.
Develop a thread of at least 500 words. You must support your assertions with citations from the textbook’s current APA format, at least 2 scholarly sources, and 1 integrated Bible verse. Any sources cited must be peer-reviewed and have been published within the last five years.
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