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incentive compensation plans represent the best most consistent method to pay for performance enabling an organization to deliver targeted results while rewarding employees who are responsible for those results incentives plans can be designed to focus on three levels of performance individual team and the organization individual incentives are the most prevalent and theyve been used for many years at the same time increasing numbers of organizations are recognizing team and group incentives as an effective way to build compensation and reward teamwork team and group incentive plans will incorporate the same design parameters as plans for individuals but theyve added complexity of measuring performance for a group of individuals rather than just one person regardless of the level being targeted an incentive plan will include the following elements first eligibility this portion of the plan decides whos eligible to receive a payout and whos not included eligibility will include how
