Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
March 22, 2010
Different Types of Incentive Pay Defined

In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman explains that there are different types of incentive pay found within an organization and these include:

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
  • Piece rates: Employees are paid a set amount for each unit (‘piece’) of production
  • Commissions: Employees earning commissions are paid in whole or in part based on a percentage of their sales made
  • Merit pay: Merit pay features incentives given on the basis of measurable and observed improvements
  • Skills-based pay: Skill-based pay is compensation based on work-related skills gained
  • Profit sharing plans: In profit sharing plans, employees’ pay is tied to the profits of the organization
  • Gain sharing plans: Gain sharing plans provide a share of the savings or gains earned by an employer

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

Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
Copyright © 2018 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: