Incentive scheme: defined by the Sticky-Marketing.com monthly magazine |
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Incentive Scheme, a scheme intended to reward. Often incentive schemes apply to people involved in sales who can be rewarded more the more product they sell, they do not
however have to apply to individuals only however and can be applied to all employees or directors.
There are many types of incentive scheme, some are capped only allowing the individual to make up to maximum level, others are based on sales volume or sales value, others still are based only on
profitability while some may confer share options on the participants.
There is much debate on the effectiveness of incentive schemes in business, probably a debate that will never be won by one party or another.
See also bonus scheme
10/06/2001 Use your browser back button or
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