Innovative Compensation

Case Study Innovative Compensation Plans Motivate Employees of Three Small Firms This case study illustrates how three small companies tie their respective incentive plans into the employees performance and the companies performance overall. The three companies are Rogan, a plastic knob business in Northbrook, IL, Aspect Communications in San Jose, CA a manufacturer of communications equipment, and Calvert Group in Bethesda, Maryland a financial-management company. All three have similar plans, but also different in many …

…be self-sufficient. If the plan rewards the employees above the additional income realized by the organization, then eventually the incentive plan will fail. This will occur especially when management realizes the mistake and reduces or eliminates the incentive plan totally. This has happened at Apollo where I work. We have had an incentive plan for years. This became more of a salary than an incentive to perform optimally and has been suspended till further notice.