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Key Considerations in Designing Incentives and Gain sharing Approaches HR Assignment & Homework Help

Key Considerations in Designing Incentives and Gain sharing Approaches

Key Considerations in Designing Incentives and Gain sharing Approaches

Key Considerations in Designing Incentives and Gain sharing Approaches

The higher productivity growth rates of the Japanese may also be due to their bonus system that encourages labor to take a direct interest in raising productivity.” Many experts believe that bonuses contribute to Japan’s success. More than one-fourth of an industrial worker’s pay may arrive as an annual bonus, tied to company profits. Some economists think that this form of payment helps explain why Japan’s savings rate is triple ‘that of the United States. And since companies can adjust labor costs by adjusting their bonuses, layoffs may not be necessary; this may help explain why unemployment levels in Japan seldom rise above 3 percent.”

Posted on September 4, 2014 in Incentives and Gain sharing

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