In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman discusses the different forms of incentive pay that can be found within an organization and one form of incentive pay is short-term incentive pay, which is described below:
- Generally, short-term incentives are given to employees within a year’s time
- Typically, these awards are paid as cash, gift cards, or other types of instantly redeemable bonuses
- The goals for short-term incentives usually focus on targets that can be achieved and measured within the current fiscal year or calendar year (e.g. a specific percentage increase in sales)
Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He can be reached at email@example.com.