Employee Reward and Incentive Programs for Export Companies
This paper examines reward and incentive program options for an export car company, evaluating the strengths and limitations of compensation-based approaches such as incentive pay and performance bonuses. Drawing on research by Cocheo, Lopez, and Zenger, the paper argues that pay-only programs are often cost-prohibitive and tend to reward only extreme performers, undermining team cohesion. It proposes a comprehensive, non-compensatory alternative that combines an employee-of-the-month recognition system, daily acknowledgment of contributions, and work-life balance incentives such as flexible scheduling and paid time off — strategies associated with sustainable, long-term improvements in employee morale and performance.
- Introduction: Overview of reward strategy assumptions and goals
- Compensation-Based Reward Programs: Incentive pay and performance bonus approaches reviewed
- Limitations of Pay-Only Incentives: Cost and narrow-reward problems with compensation models
- A Comprehensive Non-Compensatory Approach: Employee-of-the-month and recognition program proposal
- Work-Life Balance as an Incentive Strategy: Flexible scheduling and daily acknowledgment as motivators
- Conclusion: Long-term benefits of non-compensatory incentive programs
✍️ How to write this paper — guide, tools & examples ▾
What makes this paper effective
- The paper systematically evaluates multiple reward strategies before arriving at a reasoned recommendation, giving the argument a logical, progressive structure.
- It draws on peer-reviewed sources across multiple decades to support each claim, lending credibility to what is otherwise a short applied-management paper.
- The conclusion is grounded in a practical, implementable proposal — employee-of-the-month recognition, daily acknowledgment, and work-life balance perks — making the argument concrete rather than purely theoretical.
Key academic technique demonstrated
The paper demonstrates the technique of argument by elimination: it introduces compensation-based approaches, identifies their shared limitations (cost-prohibitiveness, narrow reward scope, short-term effects), and uses those limitations to justify a non-compensatory alternative. This comparative structure is effective in applied business writing because it shows the writer has considered competing options rather than simply asserting a preference.
Structure breakdown
The paper opens with a general claim about reward strategy, then devotes three short paragraphs to surveying and critiquing pay-based incentive models. The central section pivots to a proposed alternative — a tiered recognition program and work-life balance perks — supported by the same citation base. The closing paragraph contextualizes the recommendation within long-term versus short-term performance outcomes, providing a satisfying analytical wrap-up.
Introduction
A properly developed reward and incentive strategy can enable employees to perform their jobs efficiently and effectively. Many people automatically assume that a compensation-based reward and incentive program is the most likely to influence employee performance and achievement on the job. However, there are many studies suggesting that management should adopt incentive programs that are non-compensatory in nature. These ideas are explored below.
Compensation-Based Reward Programs
One reward and incentive program a company could adopt is an incentive pay program, where employees are paid incentives to facilitate more business (Cocheo, 1997). The merits of a compensation-based reward program have been called into question time and time again. If this perspective were adopted, it is likely that business might improve; however, a pay-based incentive program is often not feasible, as the associated costs can be prohibitive.
Numerous studies suggest that a performance-based program that rewards employees solely on the basis of performance is more likely to succeed (Lopez, 1981). This approach holds that compensation in the form of a bonus may motivate an employee to perform well. Like the preceding suggestion, however, adopting this proposal does not necessarily guarantee increased profitability, given the prohibitive nature of offering compensation-based incentives exclusively.
Limitations of Pay-Only Incentives
Another problem with compensation-based reward and incentive systems is that typically only extreme performers are rewarded (Zenger, 1992). It is important that employees be recognized at many levels. If only an elite group of employees is rewarded repeatedly, those employees are likely to perform less cohesively than they would if all employees were recognized for doing their best across a range of performance levels.
Conclusion
Many companies have adopted such programs with great success. If this type of program were adopted in the export company, it is likely that employees would demonstrate improved morale and performance in the long-term rather than in the short-term. Work-life balance programs are more often associated with long-term changes in employee performance than compensation-based reward and incentive programs (Cocheo, 1997).
References
Cocheo, S. (1997). Variations on the carrot theme: Community banks tinker with incentive programs to encourage front-line employees to sell. ABA Banking Journal, 89(8), 18.
Lopez, E. (1981). Increasing intrinsic motivation with performance-contingent reward. Journal of Psychology, 108(1), 59.
Zenger, T. R. (1992). Why do employers only reward extreme performance? Examining the relationship among performance, pay, and turnover. Administrative Science Quarterly, 37(2), 198.
Always verify citation format against your institution’s current style guide requirements.