In a BLR webinar titled "Compensation 101: Essential Secrets and Strategies for HR Professionals," Paul R. Dorf outlined many types of rewards options, such as spot bonuses, short-term or long-term incentive programs, individual or group incentive programs, and alternative reward programs.
Alternative rewards can include recognition and spot awards. They can be monetary or non-monetary, though there are tax implications either way. A common program is to tie awards to one of the following:
- Special issues (safety, on-call, etc.)
- Length of service
- Staffing referrals
- Achieving training and certification
- Suggestions and ideas
Some companies create programs that allow individuals to take their rewards in different ways since everyone is not equal. For example, people at different stages with different needs may opt for different payout timings or reward types.
Paul Dorf is the Managing Director of Compensation Resources, Inc. (CRI). CRI (www.compensationresources.com) specializes in providing comprehensive Compensation and Human Resource consulting services. Dorf is responsible for directing consulting services in all areas of executive compensation, short and long term incentives, sales compensation, performance management programs, and salary admin programs.