Incentive Pay

Topics: Delta Air Lines, Northwest Airlines, Airline Pages: 1 (311 words) Published: August 5, 2010
Incentive Pay

Incentive Pay is an important compensation that keeps employees wanting to perform to the best of their abilities for the company. Getting paid for specific performance results is probably in my opinion one of the reasons I would stay with a company. If I feel I am doing above and beyond what is asked of me and the company is receiving revenue based on my performance, I feel I should receive incentive pay.

With my current employer, management employees are compensated for their performance for the previous fiscal year. My company has what is called a Management Incentive Program that pays employees for specific performance results made by the company. Employees have a choice to receive their incentive pay as a stock option, check for incentive pay or they are able to receive half in stock option and half as a check. This is a good incentive pay because on top of that, employee receive a half month bonus based on their individual performance in the company.

One article I researched and found about incentive pay was the Delta Airlines employees earning $6 million in incentive pay for performance last year. In 2009, Delta Air Lines announced it would add $6 million to employees’ paychecks for meeting the February operational performance goals. Delta’s monthly incentive payouts are based on U.S. Department of Transportation (DOT) data, as well as the company’s own internal goals. During the month of February, Delta employees worked to deliver top-tier operational performance for customers, meeting incentive goals for flight completion, on-time performance and baggage handling. When the employees meet operational goals, it is a win-win for the company and the customers because not only are the customers satisfied but the employees have performed their best for the company.

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