OPPapers.com Essay Index >> Business >> Variable Pay
We have many free term papers and essays on Variable Pay. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
Rewarding Individual Employees Through Variable Pay Programs. ... Variable pay plans
have long been used for compensating salespeople and executives. ...
variable pay. Abstract The main two reasons for the companies to implement variable
pay plan are: motivating employees and reducing cost. ...
... products. The third was low variable pay for junior employees. The effect of
the variable pay plan attracted many of our employees. Our ...
... The term is often referred to when one is addressing the topic of variable
pay based on performances. Although not generally recognised ...
... the three major problems affecting the store and its sales were the product mix,
the new multi-brand store that opened a block away and the variable pay package ...
Submitted by miwa1005 on March 7, 2008
Category: Business
Words: 3662 | Pages: 15
Views: 140
Popularity Rank: 79,339
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Abstract
The main two reasons for the companies to implement variable pay plan are: motivating employees and reducing cost. In this paper we try to point out the challenges the organizations might face when they apply variable pay system by reviewing related literature. We find that it is difficult for the company to have a reliable measure for the variable pay system. In addition, the focus of the variable pay plan should be on motivating employees or cutting cost and how to strike a balance between these two is also an essential issue. Finally we conclude that we always have to assess the circumstances of the organization before applying the plan.
Variable Pay Plan 3
Variable Pay Plan: One Way to Motivate Employees and Cut Cost.
The companies which try to implement the variable pay system are increasing. More and more American employees who in the past are used to receive fixed pay with annual raises now work under pay systems with uncertain elements. (William M. Mercer Inc., 1999). Kristine and Mark's study (2002) showed that even though the predicted values of the variable pay plan were lower than the offered fixed pay, generally most of the employees would choose the variable pay as long as it was linked to individual performance. Like Paul (2007) said in his article, the employees who perform better want to know their productivity will be appropriately rewarded and the variable pay system can satisfy their needs. On the other hand, to implement the variable pay plan has some obstacles as well. The most mentioned problem in published literature I have reviewed is the lack of a sound performance measure of variable pay plan. Besides, the cost of the variable pay system is also a critical issue. Thomas (2003) proposed that the variable pay plan can transfer more compensation cost from fixed to variable which means that the company can have more control over the cost. He also mentioned that it is better for the company to...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!