Incentive can bring employees more positive attitude and passion in the future work. Rewards should translate into things that are truly fundamental to all employees which are a good work environment. The correct benefits and programs of compensation ensure that most dedicated and hard-working employees are provided with most effective and accurate compensation and rewards. The incentives and compensation motivate the employees to enhance their performance. Most of the incentives offered to employees are associated with their earnings. When the productivity is increased and more revenue is generated by the employees, such employees receive better incentives and rewards. Incentive is the best way to encourage employees for better performance and to offer quality services. Furthermore, if an employee who has the ability to earn the incentive from the organization is more likely to stay enthusiastic and loyal towards the organization. If the incentive plans have the residual volume than this situation is more likely to be positive. It can be understood with an example that if an insurance employee receives bonus for bringing new client.
And then, the employee receives the residual bonus in the subsequent year, this will increase his earning over the period of employment. This results in advantage for both the employee and employer. HR department needs to have a good plan and provide a reasonable reward to employee. Rewards and benefits are all mainly about the money. Thus, HR professionals should be completely aware of the financial laws and regulations. In order to balance the internal payroll, they also need to analyze the salary rates of the competitors to encourage equity. HR professionals also require excellent communication skills to make appropriate recommendations to the employees. The role of HR department is very important, because they are responsible for making decision about salaries and incentives of the employees, and they must make best choices. Furthermore, it is a difficult decisions regarding salary and benefits alterations, so the HR department is the best choice to figure that out.