incentive plan
Performance reward system
An incentive plan is a structured compensation arrangement designed to motivate employees toward specific goals—typically through bonuses, commissions, or profit sharing tied to performance metrics.
Companies use incentive plans to align worker behavior with organizational objectives: The sales team's incentive plan paid out quarterly based on revenue targets.
The term appears frequently in corporate HR and compensation discussions.
- bonusReward beyond expectation
- sign-on bonusPayment for accepting employment
- commissionPayment for services rendered
- profit-sharingDistributing earnings among workers
- raiseLift or increase
clawback · golden handcuffs · stock options · job satisfaction · skin in the game · spiff · sales contest · goal · quotas · stretch goal · pay-for-performance · accelerator · reward · benchmarks · merit pay · prize · brass ring · performance management
- profit sharingprofit sharing, profit-sharing, shared profits, revenue sharing, bonus
- incentive paycash bonus, performance bonus, merit bonus, sales commission, commission structure