Virginia Incentive Compensation Plan
Description
How to fill out Incentive Compensation Plan?
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FAQ
Incentive compensation is pay given to employees who meet performance standards to encourage productivity and excellence. There are five types of incentive compensation: merit pay, piecework, commissions, bonuses, and skills-based pay.
Incentive compensation is simply additional money, or rewards of value (i.e. stock), paid to employees based on their performance, and on top of their base salary. The performance measures companies use to structure these comp plans can vary widely.
Incentive compensation programs are primarily used to promote efficiency and productivity of the workforce, but organizations can also use them to enhance employee recruitment, engagement, retention and employer branding.
Incentive compensation is a form of variable compensation in which a salesperson's (or other employee's) earnings are directly tied to the amount of product they sell, the success of their team, or the organization's success.