"Incentive Pay"

What is a good program for incenting non-exempt employees?

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This depends partially if it's for a group or the entire organization. Regardless, it's best to tie to very specific goals that align with the company's objectives. As an example, if you're launching a new product, give the team members a $ incentive for meeting deadlines or, more importantly, achieving gross margin goals in the first 3 months post launch.

Posted on Jan 30, 2010
by jreich - 2 Votes - Flag this post

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There are a variety of ways to think about incenting non-exempt employees. Obviously the earlier post mentioned $. That fits some situations. Can be other types of incentives like premiums, travel, time off, etc. Not an easy question to answer generically since non-exempt could mean an hourly manufacturing worker who would not know what gross margins were or it could be a senior technician focused on closing IT trouble tickets. The best answer is that it is very situational and company specific and should be explored as such. Incentives are good. Badly designed incentives are a waste of money. Also be careful about how you calculate overtime rates once $ incentives have been paid to non-exempts.

Posted on Feb 1, 2010
by jfaletti - 1 Votes - Flag this post

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Posted anonymously
on Jan 30, 2010

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