Pay For Performance Analysis

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Pay for Performance and Employee Incentive are two compensation systems an organization may choose to adopt in designing a compensation package for their employees whereby monetary rewards are based on measured performance within the control of participants and groups.. Pay-for-performance is by far one of the most popular forms of compensation that employees can offer their workforce, even with its popularity, the question of whether or not it is the best way to compensate remains. The term “pay for performance” refers to a pay strategy where evaluations of individual and/or organizational performance have significant influence on the amount of pay increases or bonuses given to each employee. It makes major contribution to performance through…show more content…
Human resources personnel are often tasked with using employee and organizational objectives to identify and implement the best employee incentive programs. An effective and efficient incentive system must seek to address employees’ skills and motivation, acknowledgement of employees’ successes, a clearly-defined set of goals, and a means for assessing progress. These systems should be tailored to the needs of the organization as they are often implemented to prevent and overcome poor performance, failure in meeting organizational goals, poor morale, increased turnover, and the stress of increased demands on…show more content…
Pay for performance within team is also of considerable interest as they provide monetary reward based on the measured performance of the group or team though results are likely to be influenced by situational factors. Continuing on the compensation design of Courts Jamaica Limited, team incentives are embedded within its strategy of influencing performance. The company’s debt recovery unit and technical unit also see competition on a regional level wherein monetary compensation is provided to the teams. This continued to influence performance of team members within Caribbean Regions in maintaining its bad debt costs and service requests. In recent times, public sector entities have adopted both individual and team incentives to foster and influence team work and performance with the view of being more effective and efficient. In an article d/d 12/10/2015 on the Jamaica Information Service web page, the Passport Immigration and Citizen Agency (PICA) won cash reward for being the most innovative/creative entity, whilst the National Housing Trust (NHT) and the Firearm Licensing Authority (FLA) won cash rewards for most improved entity in customer
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