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Unformatted text preview: frequent. Individual Incentive Plans Individual Incentive Plans (cont’d) Standard Hour Plan An incentive plan that sets pay rates based on the completion of a job in a predetermined “standard time.”
If employees finish the work in less than the expected time, their pay is still based on the standard time for the job multiplied by their hourly rate. Individual Incentive Plans Individual Incentive Plans (cont’d) Bonus Incentive payment that is supplemental to the base wage for cost reduction, quality improvement, or other performance criteria. Spot bonus Unplanned bonus given for employee effort unrelated to an established performance measure. Merit Pay
Merit Pay Merit Pay Program (Merit Raise) Links an increase in base pay to how successfully an employee achieved some objective performance standard. Merit Guidelines Guidelines for awarding merit raises that are tied to performance objectives. Merit Pay Matrix
Merit Pay Matrix
Performance and Position in Range
Position in Range Before Increase...
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- Fall '07