On the Spot Incentives

On- the- Spot Incentives

Article Review/ Critique Assignment #2

MGT 645 Personnel Compensation Practice and Process

On- the- Spot Incentives

The article suggested one method of retaining top performing employees in the midst of job growth. Many market analysts predicts that there will be a spike in job growth within the next few years and many organizations that have not had to worry about a high turnover rates may be in for a rude awakening. Competitors will be competing relentlessly to lure in top performers from other organizations and will do whatever it takes to have those individuals working for their organizations. Many organizations will have a hard time trying to retain such employees in a time when their expertise, knowledge and skills will be needed to help manage the organization’s growth and change. According to Taylor, SHRM wrote, “64 percent of employees are extremely likely to seek new employment when the economy and job market improves, and an additional 19 percent are somewhat likely to do so” (2004). Competitors will be willing to pay hefty salaries to those top performers. According to Taylor, “the general rule of thumb is that the top 10 percent of a company’s workers can get 10 percent more money by going elsewhere” (2004). With this in mind, organizations must implement innovative plans to compensate for that their employees or show them their value to the organization. .

The article suggests that spot bonuses could very useful when trying to retain employees but must used after the economy heats up, but before formal responses like raises can be handed out . Spot bonuses are small spur of the moment gifts given to employees to recognize the employees for outstanding performance. Taylor suggests that spot bonuses are becoming more and more popular and can serve as a secondary retention tool by creating a great workplace environment, which in turn can boost recruiting efforts.

The spot bonus does not have to...