Worker's Compensation laws vary from state to state. Worker's Compensation can be either in monetary form or in the form of medical coverage. There are many different forms of incentives. Stock Options are the right to purchase a stated number of shares of a company stock at today's price at some time in the future. Merit Pay is any salary increase awarded to an employee based on his or her individual performance.
Profit sharing is when most employees share in the company's profits.
The trust distributes the stock to employees on retirement or seperation from service. Gainsharing engages employees in a common effort to achieve productivity objetives and share the gains. Incentive plans should be used when there is a clear relationship between employee effort and quantity or quality of output, when the job is standardized, the work flow is regular, and delays are few or consistent, and when quality is less implortant than quantity, or, if quality is important, it too is easily measured and controlled. Incentive plans may in some cases not be the right thing to have for many reasons. You get what you pay for.