Description
What characteristics create a good compensation plan that rewards employees for high performance without undermining profits by overpaying? Should the characteristics of the model change according to the level of the employee? Explain. Share an example of a compensation model that you have seen that either drove the right results or which resulted in unintended negative outcomes.
Explanation & Answer
Attached.
Running Head: Compensation Plan
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Compensation Plan
Name of Student
Institutional Affiliation
Date
Compensation Plan
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A compensation plan is a package that consists of workforce wages, salaries, terms of
payment and benefits. It also consists of bonuses, commissions, and incentives paid to the
workforce. A good compensation plan should provide substantial financial awards to its primary
employees. A potential reward similar to at least 10 to 30 percent of annual compensation is
paramount for motivating an employee to modify performance (Singer, 2009). Add...
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