Benefits of incentives Essay Example

incentive for our employees to stay with us. If they remain on the project for 13 months, they will receive a $10,000 bonus. Our plan is simple: if an employee completes the project within the specified timeframe, they will be rewarded with the predetermined bonus. After 13 months, whether or not employees choose to continue working with us is irrelevant. Although their skills may still be valuable, they are no longer essential to our success. Conversely, if the project is completed, there is no longer a need for employees and we prefer them to leave. However, in the event of a merger taking place, we do want employees to stay with us.

There is a risk of job loss for employees as stock options can result in either wealth or worthlessness. While previously limited to high-ranking executives, now more employees in lower positions are being given this benefit in certain companies.

An option is a financial instrument that grants the holder the right, without any obligation, to purchase a specific stock at a predetermined price referred to as the exercise price. The option itself does not have any inherent value. However, once the market price of the underlying stock exceeds the exercise price, its value increases. When a company performs well, there is an increase in demand for its stock. As a result, employees can use their options to buy the stock at the exercise price and then sell it for profit. This leads to a gain equal to the difference between the market price and exercise price.

Employees usually must be on the payroll while exercising their options to motivate them with stock options. This motivation

stems from the possibility of a potential increase in stock price, enabling them to sell the stock and generate profits. Despite accounts depicting competitive employees utilizing manipulative tactics for career advancement (Petersen, 1988, p. A1), competition also plays a significant role in the workplace. However, Lipman-Blumen (1988) noted that women are recognized for their collaborative, contributory, and mentoring behaviors (pp.24 - 25).

In a survey, almost all of the women interviewed (20 out of 23) stated that there was no competition at work. When asked about any feelings of competition in the workplace, they answered with an immediate and obvious "no." The majority of the respondents emphasized that there was definitely cooperation and they never experienced any sense of competition. Some women described the relationships in the office as characterized by immense loyalty, while others described the atmosphere as having a strong sense of team spirit.