I was recently asked by a client for my views of an incentive scheme.
Incentives can either drive success or drive a silo mentality, so having the right scheme is critical to business success.
There are 5 core principles of a successful incentive scheme:
- Firstly, the incentive should only be payable if the overall company achieves its results. This drives a team focus to ensure the company is a success, that then cascades down to a department, team, and individual level. This can of course be overridden at the Board’s discretion.
- Secondly, the incentive should only be payable for outperforming targets, not simply achieving targets as that is their job.
- Thirdly, departments and individuals should be rewarded when their achievements assist the company in delivering on the result and maximising the output of each individual.
- Fourth, is that bonuses need to be focused on the short, medium and long term with payments deferred to retain talent and drive an ongoing mindset to growth and achievement, not just a quick, short term win.
- Finally, you must ensure that the incentive scheme is appropriate for all teams and individuals across the organisation so it can self-drive success and improved results.
If you would like assistance in developing and launching your workplace incentive program that will drive results, please call or email us, we would only be too happy to share our experience with you.
