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If employees are able to sell a larger volume of fragrances then expected in a month, then they are rewarded bonus amount for the extra fragrances sold. The plan adds long-term reward system as the third layer of incentives. Long-term incentives are like golden handcuffs. Employees who build up nice war chests will think twice before leaving for a small salary bump if they have to forfeit incentive gains...
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The plan adds long-term reward system as the third layer of incentives. Long-term incentives are like golden handcuffs. Employees who build up nice war chests will think twice before leaving for a small salary bump if they have to forfeit incentive gains. Human nature is such that the long-term rewards are often forgotten or discounted by employees, unless regular reminders are presented to them...
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