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Incentive Plans

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Incentive Plans
MGT/431
February 21, 2012

Incentive Plans
Organizations provide incentive plans to employees as motivation to reach the objectives and goals of the company. Incentives are given to personnel to encourage them to do his or her best. Incentive plans in any business might include bonuses or raises, stock option plans, or other forms of incentives. This is in exchange for the employees who work harder, better, or faster in accordance with the organizations goals and objectives (Businesstown.com, 2001). The majority of incentives are performance-based policies in which workers receive additional cash or benefits centered on a worker’s performance.
Raises and Bonuses
Most companies will award a base salary increase that is dependent on several factors, including job classification, your individual performance, your company's overall financial performance, and your company's salary structure (Salary.com, 2012). Bonuses and annual incentive payouts depend primarily on two variables: your job performance and your company's overall financial performance. Depending on your job, these programs can vary in complexity and payout (Salary.com, 2012).
Each year employee’s at Aetna are given bonuses and raises based on how well the company does. If an employee receives a three or higher on his or her year-end scorecard they are eligible for the bonus and raise. During the month of February employees are contacted by their manager who advises them what his or her bonus and raise will be based on the company’s profits. If the company does well the bonus amounts are high. If the company does not a have a good year the bonus amounts are low or nonexistent. In the three years that I have been working for Aetna, I have received a bonus and raise each year.
Team Leader Incentive Plan
In the Customer Service department there are incentives for employees. The

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