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Business Compensation Methods
Pay for knowledge: workers are paid according to the number of job-relevant skills they master.
Bonus pay: one time payment to employees based on the accomplishment of specific performance targets or some other extraordinary contribution.
Profit sharing: distributing a portion of the profits earned by the organization to employees.
Gain sharing: allows groups of employees to share in any savings or "gains" realized through their efforts to reduce costs and increase productivity.
Employee stock ownership: employees are allowed to purchase the stock of the companies that employ them.
Questions:
1. Which method do you prefer as an employee? Why?
2. Which method do you prefer as an employer? Why?
3. Think of three possible career choices you are interested in, what is the compensation method (s)?
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