Week 4 Discussion – Incentive Pay Programs
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Respond to the following:
Put yourself in the position of an HR manager of a large research and development facility. The CEO is concerned about rising labor costs. The most recent employee opinion survey showed employee satisfaction with their compensation as low.
The CEO is considering revamping the incentive pay program. He’s not sure whether a person-focused incentive plan or a team-based incentive plan would best address the challenge of rising labor costs and employee satisfaction:
What are the pros and cons of each of these incentive play plans?
Which program would you recommend to your CEO that would best meet his goals?
Provide the rationale for your explanation.
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