Incentive Pay

5. Implementing a Scheme

In order for an incentive pay scheme to work, your employees must be fully committed to it.

5.1 Explain the reasoning. A written explanation will answer most questions.

• Agree a strategy and list of objectives.
• Agree the way to measure improvements and calculate incentive pay.
• Discuss specific responsibilities and goals with each employee. Employees should feel that they own the scheme.

5.2 Continue to manage your employees.

• Provide regular feedback to help employees achieve their goals.
• Listen to their suggestions.
• Agree targets at a regular review.

5.3 Analyse the success of your incentive pay scheme regularly.

• Amend the scheme if it does not work.