Monetary Program Options to reward employee performance or contribution

 

Merit Pay

Based on individual formal Performance Management and Supervisor appraisal annually.  Results in change in base pay

 

Incentive Pay

Based on individual output, productivity, sales, weekly, monthly, quarterly on annually. Results in bonus/commission

 

Profit Sharing

Based on profit made individually, team or company oriented (management decision as to profit formula), quarterly, semi-annually, annually.  Results in bonus/commission

 

Ownership

Based on stock value. Can be individual, team or company oriented, paid when stock is sold.  Results in equity changes

 

Gainsharing

Based on production or controllable costs. Can be individual, team, company oriented.  Paid monthly, quarterly semi-annually, annually.  Results in bonus/commission

 

Combined Program

A combination of programs can also foster teamwork as well as individual initiative