Understanding Incentive Compensation: Meaning, Benefits, and Implementation
Nov 22, 2024
What is Incentive Compensation?
Incentive compensation refers to a system of financial rewards designed to motivate employees to achieve specific performance goals. This type of pay structure aligns employees' interests with the overall goals of the organization, driving both individual and group performance to new heights. Essentially, it is a robust strategy that allows businesses to boost productivity and retain top talent by offering additional monetary rewards, performance bonuses, and profit-sharing models.
