Essay4Business Employees Management
Print Сite this

Incentive Plans and Executive Compensation

First of all, the importance of widespread incentives is expressed in the relationship of organizational culture with labor stimulation, which was demonstrated by the example of Sodexo. This company is characterized by the sharing of common values and goals by all employees, cohesion, complicity, individuality and a sense of the organization as “we”. These values are implemented among employees through recognition and encouragement at various levels. For example, a nurse who showed special care for a patient was filmed in a short commercial (Mathis, 2010). Thus, the attention of employees was focused on the long-term benefits of improving the personality according to the company’s values. A wide range of non-material moral incentives (honor boards and respect of the team) also contribute to the spread of organizational culture among employees.

Also, widespread incentives help to keep an employee in the company for a long time, and significantly reduce the number of layoffs. One of the crucial aspects that allow a manager to achieve a stable composition of his team and high motivation of employees is to provide them with opportunities for development. If there are no growth prospects in the company, then an ordinary worker can only hold on to his position for about three years. At Sodexo, the opportunity for self-realization is presented in the form of promotion on the honor board and occupation of one of the nominations in the “Spirit of Sodexo” program: service, teamwork, and progress (Mathis, 2010). Moreover, by encouraging new ideas and suggestions of its employees, Sodexo supports their motivation and desire to work for the benefit of the company.

The employee is personally interested in the success of his organization, which means that he closely associates his future with working in it. Sodexo uses different types of incentives, both material and behavioral (Mathis, 2010). This makes it possible to achieve satisfaction with the ways of encouraging work for employees of all types of motivation: both those for whom a material incentive is important, and those for whom public approval is important.

Having employees receive recognition and incentives at a national level can increase the performance of their coworkers and colleagues. Employees will understand that in order to also receive remuneration, they need to work on their efficiency, increase their usefulness for the company as a whole. They will start paying more attention to their professional development and training. Also, employees will understand the importance of gratitude, and will celebrate the achievements of colleagues.

A competently constructed incentive system will ensure a high level of interest and satisfaction with the work of the staff. It will also reduce costs and increase the efficiency of production of services or goods. This is an effective way to improve relations with the leaders of your organization, it affects the main aspects of culture: goal, opportunity, success, well-being, appreciation and leadership. Recognizing employees at a national level doesn’t just make workers feel valued. It creates a workplace culture where people feel positive about their supervisors, build into something bigger and a better sense of growth, achievement and overall well-being. Recognition is often more effective than a cash bonus to encourage employees to be more innovative and productive.

Employee recognition program provides many benefits and, therefore, is of great importance. Encouraging employee engagement is one way in which recognizing your employee’s efforts or hard work can benefit. It is about encouraging or stimulating further engagement and increasing overall productivity. When an employee receives praise at the national level, they automatically try to give the same level of performance and improve efforts further. Thus, a competent system of recognition of achievements and rewards at the national level will be in demand. It will definitely allow the company to gain significant advantages over competitors in the labor market, which is very important today.


Mathis, R. L. (2010). Incentive plans and executive compensation. In J. H. Jackson (Ed.), Human resource management (pp. 420-421). Mason, OH: South-Western Cengage Learning.

Cite this paper
Select style


Essay4Business. (2022, December 5). Incentive Plans and Executive Compensation. Retrieved from


Essay4Business. (2022, December 5). Incentive Plans and Executive Compensation.

Work Cited

"Incentive Plans and Executive Compensation." Essay4Business, 5 Dec. 2022,

1. Essay4Business. "Incentive Plans and Executive Compensation." December 5, 2022.


Essay4Business. "Incentive Plans and Executive Compensation." December 5, 2022.


Essay4Business. 2022. "Incentive Plans and Executive Compensation." December 5, 2022.


Essay4Business. (2022) 'Incentive Plans and Executive Compensation'. 5 December.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on Essay4Business, request the removal.