moneycloud

The Long and Short of Incentives

Possibly the biggest concern with financial incentives is how to balance the needs of the short-term and the long-term for an organization and the manager.

  1. Short-Term Incentives

Defined as benefits and payments given for goals achieved over a period of less than one year, they are usually a combination of formula-determined incentives

(based on a profitability measure of some sort) and/or a discretionary bonus.

  1. Long-Term Incentives

These are defined as incentives provided over a performance period longer than one year and often 3 to 5 years. In the past, Stock Options were the most

fashionable choice but more recently they have become less common.

 

Perks are Not Incentives

Non-cash benefits such as lavish retirement plans, opulent health insurance, interest free loans, financial planning advice and so on are considered perks and not usually considered part of pay-for-performance, although they are important to attract and retain talented managers.

Ebook call to action

I’m always open to discussing technical job specifications, and learning about new client technology stack environments, just drop me an email! Learn more about this and other topics once we are connected Mark Paszkowiak. Or join the group Mississauga IT Careers for instant job postings. To keep up with the latest tech news, please send me an invite and follow me on Twitter @cloudbenchapp.

Feel free to Like, Share and Comment. Let’s hear your thoughts below!

Source: http://www.chalre.com/hiring_managers/career_advancement.htm