Employee incentive plans go by many names. Successful corporate incentive programs will accomplish exactly what you want them to do if you plan them correctly. In general, studies have shown that individual incentives are more effective than collective incentives. Incentive pay, also known as “performance pay,” is typically awarded for specific performance outcomes rather than simply for time worked (Dessler, 2011, p. 212). Although incentives are not the answer to all workforce challenges, they can go a long way toward increasing worker performance (Dessler, 2011). Some sort of incentive compensation is an important part of any compensation plan. Incentive pay demonstrates appreciation and creates a sense of participation in the well-being of the company that regular salaries, while important, do not communicate (ABS, 2010). A well-designed incentive compensation plan can also help bring people together, steer them in the direction you want them to go, and provide the extra push every business needs in today's competitive environment (ABS, 2010). Cash incentives should always be issued separately from the regular paycheck so an employee can track their reward. Cash incentives can quickly be seen as increased commissions and difficult to withdraw at the end of the program. These types of incentives are primarily seen in sales, where people receive a base salary and a combination of incentives that motivate the employee to increase sales (Dessler, 2011, p. 214). Employees are only rewarded when their hard work results in increased profits. One of my first jobs in my company was as a salesperson. The monthly incentives changed with each product introduced and it was difficult to make sure you met the goal so you could be rewarded for your hard work...... middle of paper ...... its plan to work or it's a waste of time for both parties. The right incentive plan properly implemented can increase the profitability of any company, but if expectations rise faster than actual payments, not only the company loses, but also the employee. Small business expert offers tips for boosting sales growth in 2011. (December 2010). Marketing Weekly News, 195. Retrieved March 10, 2011 from ABI/INFORM Global. (Document ID: 2202479311). Daneshfar, A., Simyar, F., Rolleri, M. and Wnek, R. (2010). Reasons for employee profit sharing plans in the United States, United Kingdom and Canada. The Journal of International Business and Economic Research, 9(10), 1-9. Retrieved March 12, 2011 from ABI/INFORM Global. (Document ID: 2178248351).Dessler, G. (2011). A framework for human resource management (6th ed.). Upper Saddle River, New Jersey: Prentice Hall.