Incentives (How to design an effective Incentive Programme (1.Determine…
How to design an effective Incentive Programme
1.Determine what the plan intends to accomplish
3.Develop clear Performance Goals
6.Rinse and repeat
Types of monetary Incentives
Purpose of Incentives
Reach targets and company objectives.
Employers can set realistic goals and reward employees when employees reach their goals.
Great way to boost productivity and morale and achieving company goal
Types of Incentive Schemes
Relate pay based on performance
Retain best performers
Provide equal distribution of compensation
Suitable for individualistic
Factors may be overlooked.
Factors not in the employee’s control might impact outcomes.
Unrealistic standards will decrease motivation.
Mistrust between employees and management
Improve organization performance
Based on organization measures
Line of sight lessened
May not be accepted by high-level performers
Increases compensation - lack of stability
A compensation plan that
results in the distribution of
a predetermined percentage
Provides an incentive payment
based on improved
Definition of Incentives
An incentive is something that
motivates an individual
to perform an action.