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Strategies for effectively implementing pay for performance

Higginbotham

Types of Pay for Performance Models While pay-for-performance models can be tailored to meet the unique needs and objectives of different organizations, two of the most common types are merit pay increases and incentive pay. Incentive Pay: Incentive pay provides bonuses for meeting specific performance targets.

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Creating Categories for Employee Reward and Recognition

Insperity

Traditional merit-based pay plans, such as raises or bonuses, are not truly effective employee motivators, says Kevin Herring, founder of Ascent Management Consulting and an expert in workplace performance turnarounds. Merit pay, he notes, is often more about the economy than performance.