An Investigative Study on the Effectiveness of Incentive Remuneration Research Paper

An Investigative Study on the Effectiveness of Incentive Remuneration - Research Paper Example The research found that majority of the FSCs were inclined to like a larger time period for which incentives are calculated as this allows them to schedule work better. The research recommends that the organizations should have flexible options for incentives remuneration, should enlarge the amount of incentives available to the FSCs and should lengthen the time period to a quarterly period. Incentive remuneration has been traditionally used by organizations to motivate the employees to perform better and has directly been linked to the increased corporate performance (Murphy, 1985). Research has found that incentive remuneration leads to better revenue generation, better sales and overall better performance of the organization (Murphy, 1985; Bartol, 1999; Jordan, 2010). The advent of globalization and liberalization of the financial markets across the globe has resulted in an intense competition between the financial institutions – to not only profit from the business opportunities, but also to recruit and retain top talents. Retaining consultants have often been difficult for financial institutions in a competitive environment (Tan, 2009). This is also stated by Sigler (1999) in the challenges companies face in retaining productive performers. Retaining productive consultants are crucial for financial institution as they are the profit centers of it. However, incentive remunerations are not always embraced enthusiastically by all consultants (Schmidt, 2005). In many instances, management of companies painstakingly plan and set aside budget for such incentive, only to fail with the lack of participation from the employees. The problem that is detected by the researcher is that the employees in the financial institutions are not enthusiastic about the incentive remunerations, in spite of the great amount of time, energy and money that these organizations put in developing and managing the incentive