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What are two types of compensation incentives?
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Two common types of compensation incentives are:
1. Monetary (financial) incentives — direct pay-based rewards tied to performance or outcomes. Examples: bonuses, commissions, merit pay increases, profit-sharing, stock options.
2. Non‑monetary (nonfinancial) incentives — rewards that aren’t cash but improve motivation or job satisfaction. Examples: recognition programs, extra vacation/flexible schedules, career development/training, public awards or special assignments.
1. Monetary (financial) incentives — direct pay-based rewards tied to performance or outcomes. Examples: bonuses, commissions, merit pay increases, profit-sharing, stock options.
2. Non‑monetary (nonfinancial) incentives — rewards that aren’t cash but improve motivation or job satisfaction. Examples: recognition programs, extra vacation/flexible schedules, career development/training, public awards or special assignments.
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