What are all the drawbacks of" incentive+ Basic Salary" structure for Marketing Executives :-

From my experience i don't see incentive+basic salary as a draw  back from either side.

i believe it is needed to motivate the employee and reep the benefits of the extra hard work from the employer side and to achieve job satisfaction from the employee side.

Iwould never work in sales/marketing if such condition is not available,and even if i was an employer i would always offer such incentives to motivate my employees and help them reach their goals while as an employers reep the benifits of the extra hard work employees provide under this arrangement.

The topic of "effectiveness of incentives" in business is a widely debated one, surely in the aftermath of the recent global credit crunch & especially in relation to the disproportionate bonusses for people in the financial sector.

For example, it is has recently been proven through studies that extremely big bonuses for intellectual jobs have a counter-productive effect on performance, compared to physical jobs. [see reference below]

1. Performance-based incentives are dependent on the measurability of performance. And in the case of marketing this is clearly more difficult than in Sales for instance. This can be a drawback of such policy for both the employer and employee.
2. Marketing typically is a collective job, of which final results cannot be easily attributed to individuals but to a team, while in sales individual performance is easier to quantify.

For more in-depth opinion about the effectiveness of incentives, I refer to this interesting TED Talk: Dan Pink - The puzzle of motivation

Incentives in the said functional area are to accelerate the productivity above a certain bench mark for over performance and extra earnings. This way the employee adds extra revenue to the employers' kitty. So both benefit.

Good Day!!!

I believe incentive policy is made for the monitory motivation of employees particularly attached to marketing & sales. I don't see any drawback in this except one thing

If the monthly incentive exceeds the monthly salary ....... and the earning go beyond expectations, ..... this can make the person relaxed and can hamper his sales performance.

I do not know