Topic > Marketing Case Study: Americatel - 877

Incentive compensation should communicate a company's overall goals and be structured to reward performance while ensuring the company's overall growth goals are achieved . One type of incentive is a structured incentive, these incentives have two components; (1) must be able to fluctuate as performance changes and (2) be based on a specific outcome understood by both management and the employee. Examples include, but are not limited to, piece rate (set the dollar amount for each product sold), profit sharing, or fixed percentage of the total dollar amount sold. Whatever compensation structure is implemented, it will be important that the incentive is linked to pay for performance. At the moment it is clear that resources make it difficult to offer competitive salaries aligned with those of larger competitors. Therefore, linking pay to performance will ensure optimal results for both the company and the employee. Implementing a fair compensation structure will not only motivate employees but also facilitate employee retention, thereby reducing associated costs