List of Terms – I
An incentive is one of the components of compensation, by means of payment or equivalent benefits, which is contingent upon performance of the employee and/or the employees, and it is related to employee accomplishments, productivity, and output.
An incentive plan is a pre-defined agreement between the employer and the employee or group of employees, that specifies what, is being measured, how the measurement is performed, and what is the compensation. The plan has motivational characteristics intended to influence such employee behavior as regular attendance and such accomplishments as profit sharing by means of bonuses and stock options.
Learn more about the Compensation Management System