ESSAY 1: Do you believe that incentive pay is truly effort-‐inducing; that is, drive employees to perform at their best? Discuss
In recent times, companies are faced with a lot of competition and they need to constantly devise strategies to tackle this competition. They are continuously looking for ways to increase the performance of the company and ways to keep their workers and other employees motivated so that they deliver their best in such a competitive atmosphere. Incentive pay is one such strategy used by companies to perform well. Incentive pay is pay based on specific performance of an employee, which may take the form of gift vouchers, stock option, bonus, profit sharing, commission etc. It is generally used in companies where the performance is measurable. It is compensation that rewards results rather than time spent on a job. It is a method adopted by employers to motivate employees to perform better and continue delivering good results, which directly leads to the success of the company. I believe that structured monetary incentives are truly effort inducing.
Incentive pay motivates employees and maintains high work performance.
Employees find it hard to keep themselves motivated