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Incentive Pay
1. Setting Objectives
Design your incentive pay scheme to achieve specific objectives.
Your targets should be 'SMART' (specific, measurable, achievable, realistic, time-limited).
1.1 Decide what business results you want to achieve. For example:
- Hitting a certain sales target during a sales campaign for a new product.
- Specific improvements in customer service.
1.2 Decide which employees should take part.
- A specific group of employees, such as the sales team, whose work directly influences the result you are aiming for.
- The management team, so you can retain the key individuals your business needs.
- All employees, to raise general productivity and morale in the business.
1.3 Decide how long the scheme should run.
- If you want to concentrate on one particular result, limit the time. For example, until a backlog of orders is cleared.
- Consider adopting a scheme as a permanent part of your business' culture.
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