When it comes to the online reputation management company, money and motivation is something that is important in order for employees to stay committed to their job and loyal. Incentives are huge in large organizations and it is important for them to understand the different forms of money for their employees and wait is fixed and variable pay.
For employees, understanding fixed pay is easy since this is a compensation that is related to independent performance of the employee, a group or the organization. This means if the company has exceeded their profits, or met a certain goal, the employees in the organization would receive a bonus. Then there is a variable pay on the other hand which is any plan that ties the pay to productivity of an employee or of the organization. In Canada, it is said that there are 87% of businesses that offer cash bonuses, 12% that offer profit-sharing, 7% that offer gain sharing, 6% that offer team-based incentives and then 6% of companies offer different incentives from those listed.
There us merit pay and merit raise which is basically a salary increase for the employee that has done an outstanding job in the last year or six months therefore get rewarded. When it comes to incentive pay, it can be rewarded every year or every six months depending on the performance level of the employees. Depending on the job, there are different types of incentives and there can be operations employees, for senior managers, executives, and salespeople or for groups and teams in the business. One common incentive plan in an organization is piecework and this is basically an hourly rate based on production. The employee gets paid per piece that they produce over a certain day. Straight piecework and guaranteed piece work are other incentive plans but this is based on a set payment for each piece produced or processed instead whereas guaranteed piece work is a minimum hourly wage plus an incentive for every additional piece that is produced.