Compensation Package
Problem:
You are a member of a national human resource management
society which provides web materials for members, as well as on-line chat
learning events with field experts. You have just finished reading a live chat
presentation with the Martocchio, leading author on strategic compensation.
Martocchio says that when designing incentive pay programs, there are 5 factors
that should be considered.
Whether the plan should be based on group or individual
employee performance.
The level of risk employees will be willing to accept in
their overall compensation package.
Whether incentive pay should replace or compliment
traditional pay.
The criteria by which performance should be judged
The time horizons for goals, long term, short term, or a
combination of both.
You are asked by the chat moderator to contribute to the
learning event by choosing 2 of the 5 factors, and posting chat on them.
Discuss why those factors are important to consider, and the role each plays in
developing effective incentive programs.
