Solution

Contingent Rewards

The term contingent reward describes awards including financial and nonfinancial gifts that employees get once they reach their specified performance goals. Organisations reward employees with these incentives to achieve their set performative objectives as well as behavioural standards (CIPD, 2022). The distribution of contingent rewards at Eco-Insulate occurs through activity-based pay systems where installers receive incentives to complete defined numbers of installations. Groups receive recognition awards in public ceremonies after following specific quality standards. This is an instance of contingent reward system.

Individual performance

Eco-Insulate achieves better performance from each installer because of its skill-based compensation system (Cotton, 2023). The company may spend additional funds on Energy Star certified installation payments. The higher payment rates for certain installations would motivate them to accept those assignments instead of participating in certification training programmes. Induced by increased payment for experienced installers several would freely choose voluntary Employee training programmes offered by their employer for Energy Star certification. The higher price levels for complex installation systems would inspire professionals to enhance their technical abilities. Higher compensation linked to skill development will enhance both the professional quality and operational efficiency of workers.

Team performance The utilisation of contingent team rewards leads to positive outcomes for Eco-Insulate team performance. Sotak et al. (2023) agree…………

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