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Hr Generalist

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Does incentive compensation really work and help to promote long lasting performance or is incentive compensation "fundamentally flawed and incapable of motivating improved performance"?

It is widely known that everyone who works is always expecting a compensation, people don’t work just for fun, especially in this market economy in which consumerism has achieved the highest level and everyone wants to acquire the last cell phone model, the most updated iPad version or the best car just to cite a couple of examples. On the other hand, besides consumerism there are basic needs that need to be satisfied such as shelter, food and these ones are priority. For this reason, providing incentives is a good option to retain the most valuable employees and to help improve performance not only at the executive level, but also from everyone within the organization. The smartest alternative is to increase productivity by tying pay to performance so that the output reach expected and high levels. If employees want to be able to travel with his family or to go on a cruise or to buy the extras, they have to put all its effort in order to obtain their incentive in forms of per piece pay, commissions and bonus. At the end, everyone benefits from this situation.

However, not all the time providing incentives on monetary terms produce an incentive on employees or have a positive effect on improving performance. Some workers are more interested in improving as professionals, learning more and growing within the organization. For this reason, Career Management and Career Development still play a major role while motivating high end employees. If you get a bonus or a commission of course you will enjoy it, but if you are not happy with your current position since you have no more opportunities to expand, what comes next? Obviously, not everything is about money, internal

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