BUS340 Advanced Human Resource: Employee Incentive Policy Design

This report proposes an employee incentive policy centered around allocating company shares based on individual sales volume. The policy aims to motivate employees to achieve set goals by rewarding them with shares when sales volume preconditions are met, along with incremental discounts for exceeding sales targets. The incentive system is structured over a three-year period (2016-2018), with increasing share allocations and discount percentages for employees achieving sales volumes of 400, 500, and 600 units annually. This strategy directly links incentives to employee performance, rewarding top performers and fostering a culture of motivation within the organization. The report references relevant academic literature to support the design and justification of the proposed incentive policy. Desklib provides access to a wealth of student-contributed assignments and study tools to support academic success.

Running head: Employee Incentive Policy 1
Employee Incentive Policy
Student Name
Institution of Affiliation

Employee Incentive Policy 2
Incentive policy: All employees shall be allocated shares based on employee sales volume
The reward system or incentive system that I would recommend for the manager, in this
case, is to use shares. This is an incentive system or policy in which the sales manager will
allocate the employees shares based on their sales volume (Li, & Pycia, 2016). However, the
employees shall be awarded these shares only when the sale volume is pre-conditions are met.
This policy is justifiable as it allows the employees to put all their efforts and achieve the
set goals (Ahmad, 2015). Moreover, it is also a motivating factor to the employees in the
organization to work effectively and achieve the set goals.
How to implement this system?
This policy is implemented by setting clear and transparent objectives of the system
across all departments. These objectives will help in ensuring that the employees receive their
rewards on time. The first step is for the employees selling 400, 500 and 600 units annually will
receive a total of 20, 22 and 25 shares respectively.
Incremental Discounts
Additionally, the employees shall receive an additional 2%, on sales exceeded in each of
the sales volumes set. This promotes acknowledgment of the employees in the organization.
The three-year incentive system for the employees
Duratio
n
Year Who How Name of
rewards
Discounts on
sales
exceeded
KPIs
Annual 2016 Individual
employee
Based on sales
objectives
20 shares 2% sales
exceeded
400 sales
units
Annual 2017 Individual
employee
Met sales
objectives and
22 shares 2% sales 500 sales

Employee Incentive Policy 3
levels based on
performance of
individual
employee
exceeded units
Annual 2018 Individual 25 shares 3% sales
exceeded
600 sales
units
The incentives are linked directly to the performance of the employees. This is a strategy
that allows the best performing employees every year (Krzemień & Wolniak, 2007). Incentives
are one of the motivational approaches that support best services or rewards to the employees
who are doing well in the organisation.
Reference

Employee Incentive Policy 4
Ahmad, S. (2015). Green human resource management: Policies and practices. Cogent Business
& Management, 2(1), 1030817.
Howard, L. W., Turban, D. B., & Hurley, S. K. (2016). Cooperating teams and competing
reward strategies: Incentives for team performance and firm productivity. Journal of
Behavioral and Applied Management, 3(3), 1054.
Krzemień, E., & Wolniak, R. (2007). Problems of incentives for employees in the quality
management of the service sector. Quality & Quantity, 41(5), 749-756.
Liu, Q., & Pycia, M. (2016). Ordinal efficiency, fairness, and incentives in large markets.