Annual Cash Incentives for Managerial and Professional Employees

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WorldatWork Journal, Vol: 13, Issue: 4

Publication Year:
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Scott, K. Dow; Sperling, Richard S.; McMullen, Thomas D.; Wallace, Marc
Scanlon Plan; Retail Store Performance; Joe Scanlon; Identity Principle; Employee Engagement; Rewards Professionals; Reward Programs; Reward Alignment; Employee Satisfaction; Employee Performance and Retention; Pay Programs; National Survey; Compensation; Employee Perceptions; Counter-Offer; Taking Control; Business Management; Counter-Offer Strategy; Employee Performance; Employee Retention; Reward Communications; Employee Understanding; Cash Incentives; Managerial Staff; Professional Employees; Annual Cash Bonuses; Compensation Committees; IRS Tax Codes; CEO Comepnsation; Board Diversity; Merit Pay; Money Incentives; Survey; Merit Pay Programs; Opinion Surveys; Millenials; Web 2.0 World; Internet Age; Fundamentals; Compensation Programs; Fiscal Management; Employee Compensation; Hay Group; HR; Line Executives; Employee-Benefits Programs; Company Culture; Controllable Expense; HR Management; Organizational Effectiveness; Base Pay Compensation Programs; Reward Fairness; Pay Satisfaction; Individual Performance; Group Performance; Scanlon Principles; Watermark Credit Union; Scanlon Companies; Scanlon Leadership Network; Employee Rentation; Talented Employees; Gainsharing; EVA; U.S. Postal Service; Company Competitiveness; Cost of Labor; Operating Expenses; Pay Packages; Business
article description
The cost of labor (i.e., salaries, benefits and incentives) accounts for a sizeable portion of an employer’s operating expenses. Pay packages priced too low or configured improperly can deprive firms of the talent needed to successfully develop, market and produce viable products and services in today’s ultra competitive business environment. However, if pay packages are too high, labor costs can weaken a firm’s ability to compete. For example, a firm with 500 employees can have labor costs that easily exceed $15 million. Thus, building and maintaining a cost-efficient pay system that encourages employee performance without adversely affecting corporate earnings requires constant vigilance.