Individual Pay Programs:Design Features Payment Frequency Performance Programs Method of Payout Measures Coverage Merit Pay Change Annually Boss' -All in base appraisal Incentive Pay Bonus -Weekly Output, -Direct productivity labor Profit Sharing Bonus -Semiannual -Profit -All or annual Ownership Equity -Sale of Stock value -All changes stock Gainsharing Bonus Monthly Production Production quarterly costs /service unit Skill-based -Change when skill Skill -All in base is acquired acquisition ©2004 by UIBE Liu yuxin 9-11© 2004 by UIBE Liu yuxin 9-11 Individual Pay Programs: Design Features Payment Method Frequency of Payout Performance Programs Measures Coverage - All - Direct labor - All - All - Production /service unit - All - Boss’ appraisal - Output, productivity - Profit - Stock value - Production costs - Skill acquisition - Annually - Weekly - Semiannual or annual - Sale of stock - Monthly / quarterly - when skill is acquired Merit Pay Incentive Pay Profit Sharing Ownership Gainsharing Skill-based - Change in base - Bonus - Bonus - Equity changes - Bonus - Change in base