The Impact Of Contingent Compensation On Employee...

The effect of contingent compensation on employee performance in hospitality industry Introduction Compensation is regarded as one of the most persistently motivating ways to incentive employees (Torres Adler, 2012). So, it is important for a company to choose a reasonable compensation system which can not only increase the revenue but also can motivate the employees to do the better job (Johnson, Friend Agrawal, 2016). Many companies will consider carefully about designing the compensation system to retain and recruiting the employees (Torres Adler, 2012). More and more companies in nowadays business environment choose the contingent compensation to motive their employee better (Conte 1992). The contingent compensation is a kind of intensive mechanism which can not only use financial measurement such as profit but also use a nonfinancial measure such as produce quality, consumer satisfaction to evaluate the employee s performance. And this study will focus on two kinds of contingent compensation: employee stock ownership plans (ESOPs) and profit sharing plans. Most of the res earch about contingent compensation is about the general business and almost none of them have studies this kind of compensation system in the hospitality industry. So, I want to examine the effect of contingent compensation on employee performance in the hospitality industry. The importance of this study is to fill the research gap which is to talk about the relationship between theShow MoreRelatedContrast the essential differences between the best-fit and the best-practices compensation model. Which do you think is more suitable for Egyptian organizations?997 Words   |  4 Pagesthe company wants to accomplish, how it wants to behave, and the kinds of performance and performance levels it must demonstrate to be effective. 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