Variable Pay: Is There a Difference Between a Bonus and an Incentive?

Compensation Today

PayScale’s 2017 Compensation Best Practices Report (CBPR) revealed that nearly three-quarters of organizations give some type of variable pay. Is there a difference between a bonus and an incentive? Bonus” falls under the umbrella. This thing worked out well; I liked it.

[Infographic] Top 10 Best Workplace Incentives

Get Hppy

Vacation bonuses. But are incentives like these actually worth it? Morale-boosting workplace incentives will reduce turnover and its associated costs. Many companies hesitate to start incentives programs because of the costs it will incur. Gourmet meals. Game rooms.

The 5 Elements of a Good Incentive Plan

Compensation Today

Offering incentives is a practice that has seen increased popularity over the past decade. In PayScale’s 2017 Compensation Best Practices Report , over 60 percent of organizations surveyed said they give individual incentives, and nearly a quarter of them reported giving team incentives.

Tips for Safety Incentive Programs

HR Daily Advisor

A safety incentive program is one option for employers to implement to help to improve safety in the workplace. What Are Safety Incentive Programs? First off, what are we talking about when we say “safety incentive program”?

Incentive Pay is Like a Par 4 Golf Hole

Compensation Cafe

The practiced CEO performed well and graciously accepted that there are times when second place is just fine. Joe did well and used some of his winnings to pay for a set of lessons for Kathy.

Employee Bonuses 101

Namely

There is a lot to be aware of when it comes to bonuses. Small HR teams have a lot on their plate already, so bonus season can seem even more time consuming and chaotic. To help, we’ve compiled four essential elements to consider when setting up a bonus system. Timing Bonus cadence can take a variety of forms. There have been cases made for annual, semi-annual , holiday, and even spot bonuses. What do you want bonuses to achieve?

Best of the Force: Is the Purpose of Incentives to Motivate People?

Compensation Force

Article after article tells us that we should halt our use of incentives because people aren't motivated by money. Many of the incentive arguments centered around whether or not money motivates people reflect a wrongheadedness about the role of and reason for variable pay.

Update: Employee Compensation at Wells Fargo

Compensation Cafe

Compensation Cafe has covered Wells Fargo's pay practices since 2009, when the Bank canceled prefunded employee recognition and rewards events in the midst of the Recession, blaming it on federal government restrictions on bank practices following the subprime mortgage crisis.

How Well Do Numbers Speak for Themselves?

Compensation Cafe

On July 6, 2017, the Lansing State Journal reported this information about Michigan State University's President, Lou Anna Simon. Base pay $750,000; bonus $100,000; non taxable pay $10,198. Base Salaries Compensation Communication Executive Compensation Incentives/Bonuses

Five Corporate Workplace Well-Being Trends to Watch in 2018

TalentCulture

Workplace well-being programs have really grown up in recent years thanks to significant changes and upgrades in technology and a renewed cultural interest in health and well-being. Here’s a look at five key workplace well-being trends I’m keeping an eye on in 2018.

Top Workplace Incentives Your Employees Actually Want

Aventr

When deciding which incentives to offer your employees, you may be shocked what can work. Today we are sharing some excellent workplace incentives that your employees want. You need to consider each employee incentive that you put forward heavily. Each incentive has the chance of being perfect for your company, but it also has the chance of being negative. According to a recent article published on The Balance : Incentives can be tricky for employers.

Are Holiday Bonuses Right for Your Company?

HR Payroll Systems

The holiday bonus is something that has made good fodder for holiday comedies for years, but many companies have lately altered their views on the age-old practice. With this in mind, are holiday bonuses right for your company? Holiday Bonus Complications. Merit Based Bonuses.

Here's Why Cash Bonuses Don't Work for Referrals

Entelo

The value of the employee referrals hiring channel is old hat in the recruiting world, with some companies going as far as offering exorbitant bonuses in exchange for access to their employees' networks. What seems to be the issue with cash bonuses for referrals?

What Hourly Workers Really Want (It Might Surprise You)

Achievers

Bonuses. Another work perk that hourly candidates care about is a performance-based employee bonus. Although this seems like the same thing as paying more per hour, which most hiring managers can’t do, bonuses are different. Well, there are a couple very good reasons.

BLR’s 2017–2018 Pay Budget and Variable Pay Survey

HR Daily Advisor

How much of an increase in pay are your employees receiving in 2017? 2017 Merit Increases. across all employee types, 2.5-3% is the most commonly awarded amount among employers awarding merit increases in 2017. 2017 General Increases (Not Tied to Performance).

Who Owns Retention? The REAL Employee Turnover Problem

Achievers

If turnover is a problem, it is very possible that reworking your recruiting processes might be needed as well. Or are they setting bonus plans according to the concept of “do more with less,” which is driving away the talent you can’t afford to lose.

Is Your Safety Incentive Program Illegal Under OSHA?

Workstride

According to the CDC, workplace injuries (and the affected employees’ subsequent absences) amount to well over $200 billion per year. What went wrong with the traditional safety incentive program? What are the benefits to an OSHA-compliant safety incentive program?

Variable Pay Is on the Rise: What the Data Show

Compensation Today

This is an excerpt from PayScale’s 2017 Compensation Best Practices Report. There are bonuses, incentives, benefits and much more. Why not offer spot bonuses for individuals who show strong examples of the company’s core values? Bonus Type by Organization Size.

18 Ways: How to Find your Dream Candidate for 2017

Achievers

“Whatever your life’s work is, do it well. A man should do his job so well that the living, the dead, and the unborn could do it no better.” — Martin Luther King, Jr. If you prefer to not leave the comfort of your home or office, a virtual one works just as well.

The Three Gravitational Laws of Performance Pay

Compensation Cafe

It's easy to follow through on your performance pay promises when things are going well and the organization is financially prospering. Lazear & Gibbs describe this phenomenon as follows: "consider a measure that had previously not been used for calculating an employee's bonus.

Are You Paying for Peripheral Vision?

Compensation Cafe

We seem to love to get granular with incentive plans. So many compensation professionals are tasked with not missing anything, they include darn near everything in their incentive plans. It is not a great evolutionary trait in incentive plans.

Because only 10% of your team really matters, right?

What is Paul Thinking

Most of the time you, or your VP of Sales will suggest an “incentive” program to get people focused on sales and reward those who sell more. It’s a problem because it isn’t an incentive program. An incentive program allows me to control the outcome.

Performance Pay and Job Design

Compensation Cafe

We're all familiar with piece-rate pay, spot bonuses, annual incentive plans, and the like. Despite years of research by scholars and practitioners alike, we still don't have a well-developed understanding of the contexts in which performance pay will (won't) be effective.

12 Powerful Tips to Build an Employee Recognition Culture

EmployeeConnect

HR departments, which are challenged to recruit and retain the best people, are the prime movers for implementing a recognition culture that motivates and rewards employees them with essential psychological rewards that extend far beyond material incentives. Employees who do their jobs well – even manual labour that might be viewed as demeaning – should be able to earn opportunities for expanded responsibilities, training for job advancement and cross-training in other company operations.

Why Potential Rewards Matter More at Work than Fear of Punishment

Compensation Cafe

shows that fear of punishment (pay cut, reduced hours, being put on a performance improvement plan) causes people to primarily withdraw, shut down, and perform less well. Incentives/Bonuses RecognitionWhat motivates employees best? The potential of rewards?

Performance Pay for Gig Workers?

Compensation Cafe

It doesn’t work so well for gigs where the quality of the output matters. For time-sensitive tasks, a small early delivery bonus could be the little extra incentive your gig worker needs to make sure things are wrapped up on time.

A Fresh Look at the Metrics in Your Management Incentive Plans

i4cp

Professionals in the human capital space are often confronted with questions about business performance metrics, especially when it comes to plan design for short-term and long-term incentives. More concerning is the likelihood that most managers don’t have a clue how to personally impact those results—bringing into question the whole notion of incentive. Boards of directors that reluctantly approve bonus payouts, when they know darn well the goals were sand-bagged.

The Top 40 Corporate Wellness Companies That Are Transforming Workplace Health and Happiness

SnackNation

The Top 40 Corporate Wellness Companies That Are Transforming Workplace Health and Happiness. A study by the Harvard Business Review found that for every dollar invested in wellness, companies average a return of $2.71 Includes 10 bonus ideas you can’t find on the blog.

Eternal Sunshine of the Spotless Mind

Compensation Cafe

How well can you explain your past decisions and actions? . What were the specific "asks" and "expectations" five or six years ago How well did you meet these objectives and did you ask your employees or executives how effective the plan was in motivating them to those achievements?

Out of the Box Ideas for Employee Appreciation Week

Achievers

Games have come back in a big way in 2017, and they are the perfect way to facilitate some team bonding and to let off some steam in the process. This one requires some prep, but is well worth the effort. By: Sarah Clayton. Communications and Campaigns Specialist, Achievers.

Paycor Receives WorldatWork 2017 Seal of Distinction

Paycor

17, 2017 — WASHINGTON , D.C. PRWEB ) — Paycor , the industry leading Human Capital Management provider for SMBs, today announced they have earned WorldatWork Seal of Distinction for 2017. Paycor is one of 160 organizations to be honored as a 2017 recipient. Applicants are evaluated on: • Health & wellness. • Bonus programs. Short-term incentives. Long-term incentives. Financial wellness. See the full list of 2017 recipients here.

Cafe Classic: Before You Link Pay to ANYTHING.

Compensation Cafe

As any of us who've considered using customer feedback metrics in incentive design know, this can be a potential minefield. Markey's cautionary advice on pay linkage is well written and worth our consideration beyond the boundaries of customer feedback metrics.

Compensation Work and Skin in the Game

Compensation Cafe

How well could you pinpoint the gaps between what you've got going on today and what is needed tomorrow (or this afternoon)? But I think there's also the reality of how well our compensation jobs allow us to see and understand the day-to-day reality of the work people are doing.

Job Candidates: How to Win Friends and Influence Their Decisions to Join You

Compensation Cafe

Compensation can be a go/no go for a potential new employee, but recent 2017 research tells us job seekers have much broader expectations of you and your company. Here is a summary of what 2017 job candidates' priorities are. Everyone was impressed with the prospective employee.

eBook 60

Startup Equity: Staying Private in a Public World (Part 11 in an n part series)

Compensation Cafe

They have well-established company cultures and often focus on excellence before innovation. Compensation Philosophy Executive Compensation Incentives/Bonuses Stock/Equity Compensation Total Rewards dan walter equity compensation pay performensation startup

What Would Einstein Do (If He Had to Solve YOUR Pay Problems)?

Compensation Force

Well, help comes our way from an unexpected source: renowned physicist and Nobel Laureate Albert Einstein on solving tough problems under pressure. Base Salary Management Bonus/Incentives Compensation - General Metrics/Analytics Pay for Performance

Cafe Classic: Balancing Process and Outcomes – How “Silo” Thinking Can End Up Rewarding the Wrong Thing

Compensation Cafe

Recent Gallup research highlighted this well.) . Incentives/Bonuses Pay for Performance Recognition Total RewardsEditor's Note: Balance is a fundamental concept in the design of rewards.