What does IC mean in ACCOUNTING
Incentive Compensation is a type of compensation plan designed to reward employees for meeting and/or exceeding performance goals. An organization might use an incentive compensation program to encourage behaviors that support the achievement of organizational goals or objectives.
IC meaning in Accounting in Business
IC mostly used in an acronym Accounting in Category Business that means Incentive Compensation
Shorthand: IC,
Full Form: Incentive Compensation
For more information of "Incentive Compensation", see the section below.
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Essential Questions and Answers on Incentive Compensation in "BUSINESS»ACCOUNTING"
What types of behavior does an Incentive Compensation Program typically reward?
Generally, an incentive compensation program rewards things like sales growth, efficiency improvements, market share gains, cost savings, customer satisfaction, employee retention or loyalty and other similar behaviors that directly or indirectly support the successful accomplishment of an organization's objectives.
How is success usually measured in an Incentive Compensation Program?
The success of the program is measured by how well employees perform against pre-determined goals and benchmarks set by the organization. The results will be evaluated and compared over a certain period of time to determine how much of a financial reward employees should receive.
What types of financial rewards are given out?
Rewards vary based on the company's policies but they could include cash bonuses, stock options or awards, gift cards and other incentives such as trips or vacation packages. The size of the reward generally depends on how well employees meet their performance goals.
Is it possible for employees to earn more than one type of incentive at once?
Yes, depending on the incentive structure set up by the company, it can be possible for employees to earn additional incentives if they exceed expectations with regards to their performance goals. For example, an employee could receive both a cash bonus and stock options if they far exceed their goal targets.
Are there any disadvantages associated with implementing an Incentive Compensation Program?
Yes - one potential disadvantage is that some individual performers may be rewarded disproportionately due to luck or chance rather than merit which may create tension among team members who are not receiving equal rewards for their effort. Additionally, providing significant rewards could encourage unethical behavior in order to increase the chances of achieving higher payouts which could negatively impact overall productivity and morale within the workplace.
Final Words:
In conclusion, Incentive Compensation Programs are used by companies in order to motivate and reward employees who achieve certain performance goals. Benefits provided through these programs come in various forms such as cash bonuses, stock options or awards as well as vacations packages depending on how well those goals are met. However, these plans may also lead to resistance among staff members who feel that they haven't been adequately rewarded for their efforts compared with peers so caution needs to be taken when setting up such schemes in order to ensure fairness amongst all individuals involved.
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