The Best Employee Incentive Programs For Businesses: 4 Tips

Genesis HR Solutions

Is the line between “employee appreciation” and “employee incentive” a little blurry to you? However, I think it’s important that we do attempt to clarify the differences, because effective employee incentive programs serve a different purpose than employee appreciation programs.

Promotions, Bonuses, Raises, Recognition - When They Work (and When They Don't)

Compensation Cafe

You can’t give all employees promotions, bonuses, or raises. In perhaps a worst-case scenario, promotions are little more than title changes in which the employee’s job duties change little if at all with no pay increase. Bonuses. Follow Derek on Twitter at @DerekIrvine.

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At Some Point, You Have to Talk with the Executive Team

Compensation Cafe

This "war story" is the one about the Compensation Director who hired a firm to develop a new compensation program. Meet privately with each executive who will be at a full meeting of the executive team. Earlier, she was a Principal at Willis Towers Watson.

What's Going On Out There?

Compensation Cafe

Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café. Earlier, she was a Principal at Willis Towers Watson.

AON 63

Cafe Classic: A Few Things Economists Would Like Compensation to Know

Compensation Cafe

concepts like performance appraisal practices, bonus allocation, merit increase awards, high potential selection and, well, most of the things that we spend our time on. Earlier, she was a Principal at Willis Towers Watson.

Plan Design Laid Bare!

Compensation Cafe

Skip the following steps at your peril! Whether you are redesigning your base pay program or creating an incentive plan, it pays to learn from experienced colleagues, so I've included links to Compensation Cafe articles about each of these three best practices.

Cafe Classic: Are Your Customers Unhappy, Too?

Compensation Cafe

That’s why I was shocked to hear this following story at from a couple who work at a Silicon Valley technology giant. It is believed that leadership discussed an industry opinion piece saying that 20% results for these survey questions should be expected at this point in time.

How to Make Headway on Pay Transparency

Compensation Cafe

It's time to accept that your job has changed from gatekeeper (limiting access to pay knowledge until employees are "ready") to educator (describing the nuts and bolts of salaries and incentives). Earlier, she was a Principal at Willis Towers Watson.

Cafe Classic: The Truth About Great Compensation Design

Compensation Cafe

Frankly, the better we understand and the sooner we embrace this reality, the we will be at delivering the right results! A few managers can become better at managing through coaching and development. Look at one nitty-gritty example. Editor's Note: The truth hurts.

Don't Do That! Bad Habits and Compensation

Compensation Cafe

New incentive coming up next year? Whether you're developing an implementation plan or a communication plan, it's crucial to start by defining the habits, understanding and attitudes that exist now and will just be plain wrong when you move into your new plan or new compensation year.

Spring Cleaning Checklist!

Compensation Cafe

Looking at clear skies these days? Bonuses are paid, last year's results are old news and grand plans for this year have been signed, sealed and delivered. Run your bonus plan(s)through the washer periodically. Take a look at Ann Bares' suggestions.

3 Ways to Improve This Year's Compensation Communications

Compensation Cafe

Here are three tips you can use any time during the year, but most of all during merit increase and incentive award periods. If the email/intranet mix described is not available at your location, then turn to Q and A communications. Earlier, she was a Principal at Willis Towers Watson.

Why Don't You Invite Yourself to Your Next Executive Interview?

Compensation Cafe

And, when pressed, most of us admit that we don't have one at all. (No Then take a good look at the philosophy that emerges from the reality of your standards and practices. . How do you explain your bonus awards? Many employees can't explain what they did to earn their bonus.

When Size Matters -- Basics for Early Stage and Small Companies

Compensation Cafe

When you talk about employee pay, even in one-on-one conversations, you should always describe it as part of the Total Rewards for working at your company. Think about how much time and attention you'll allocate to being competitive -- or at least, knowing accurately what competitive means.

Is Pay Transparency a Gift? Agree, No Opinion, Disagree

Compensation Cafe

I know what I can do to influence the size of my incentive. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café. Earlier, she was a Principal at Willis Towers Watson.

Cafe Classic: Be Careful What You're Grateful For This Year

Compensation Cafe

looking at the career paths of the 24 women who head Fortune 500 companies. All told over 70 percent of the 24 CEOs spent more than ten years at the company they now run, becoming long-term insiders before becoming CEO." Earlier, she was a Principal at Willis Towers Watson.

Mid-Career Hires Are Tricky

Compensation Cafe

At the same time, mid-career hires are tricky. Let's face it, the job switch is a life event for most of your candidates, involving substantial change and readjustment as well as career promise. Development. Incentives. Mid-career hires take this to the next level.

Quick Reminder on Performance Management Effectiveness

Compensation Cafe

This is the best logic I've ever heard on the rationale for this "one size pretty much fits most" pay practice -- to which the McKinsey writers add encouragement for spot bonuses that are calculated as a percent of base pay rather than a negligible amount.

How Are Salaries Affecting Millenial Engagement?

Compensation Cafe

But at least I could imagine that my income (and buying power) would keep growing if I kept working, and my employers knew they were likely to keep me as an employee. Earlier, she was a Principal at Willis Towers Watson. Millennials.

Solid Reasons to Start Communication Planning in August

Compensation Cafe

If you are going to make sure your compensation and performance management programs are procedurally fair , you've got research, analysis and strategy development to complete. Earlier, she was a Principal at Willis Towers Watson.

5 Ways to Fight the "Peanut Butter" Syndrome

Compensation Cafe

In other words, they are just not comfortable looking at how their actions affect their employees in anything but the simplest framework. Does the individual have the potential to deliver at a noteworthy level that will advance business operations both now and in the future?

Cafe Classic: Chaos Theory

Compensation Cafe

When your salesforce notices -- that is, when you can no longer afford to keep throwing money at them -- their motivation will waiver just at the time you need them most. Earlier, she was a Principal at Willis Towers Watson.

Cafe Classic: Can You Spell D E B U N K?

Compensation Cafe

There is an extreme mismatch between what our employees really want and our efforts at motivating them (through feedback, merit increases and incentives). . of the Center for Effective Organizations at the University of Southern California.

Looking for a Compensation Communications Template Anyone?

Compensation Cafe

Find ways to include longer explanations that employees can read at their leisure -- for example, Qs and As and tip sheets that they can refer to on your intranet. Earlier, she was a Principal at Willis Towers Watson. It's that time of year again.

You've Got to Start Somewhere!

Compensation Cafe

Market tested your incentive rates? At that point, people will be eager to hear more -- specifically, what the plan overview means for THEIR pay. Earlier, she was a Principal at Willis Towers Watson. Have you just invented your company's first salary structure?

Ready for Cutting Edge Communications?

Compensation Cafe

We have no place to go but up, so improvements could happen at any time. Figure out all of the ways that you can support them in pay and performance decision-making and give them first shot at your budget. Or how about building an online resource that helped them understand the pros and cons of giving everyone the same bonus, and showed them simulations for different payout scenarios? Step back and look at those outcomes.

When Virtual Reality Meets Plan Design

Compensation Cafe

This enables you to see things you need to see, and do things you might not have tried on your own yet, so you're better able to develop a plan. Earlier, she was a Principal at Willis Towers Watson. Base Salaries Compensation Communication Incentives/Bonuses

How to Improve Plan Design

Compensation Cafe

According to behavioral economists, we have a lot to learn about designing cash incentives. It is common with MBOs, sales programs and classic incentive designs. Why does this matter at work? Earlier, she was a Principal at Willis Towers Watson.

Cafe Classic: Time for Spring Cleaning?

Compensation Cafe

I've put some of the traditional ones at the end and begun with a few less common ways to obtain important insights via audits. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café.

Marketing Compensation to Employees and Managers? You Bet.

Compensation Cafe

Just as increased medical deductibles can simply telegraph higher out-of-pocket costs to employees unless they are addressed from a marketing standpoint, compensation announcements are strengthened by addressing employees' desires for recognition, a career with a successful company and retirement.

Cafe Classic: Get Rich Quick!

Compensation Cafe

One day he was shootin' at some food and up through the ground came some bubblin' crude. Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café.

Who Are We Kidding?

Compensation Cafe

I have no doubt that EBITDA is the right target measure for most companies to hang all or part of incentive plan funding on. Will it cause the manager in shipping to make an effort to improve delivery times so this year's incentive plan is funded?

A Word to the Wise, Once Again!

Compensation Cafe

Have a look at what the outside world says about our work -- at a minimum, you're bound to learn some things about Glassdoor that will come in handy: " Where Did Your Pay Raise Go? It May Have Become a Bonus " We all know about this trend, we've helped to create it.

Software Implementation? Skip the Machine Language!

Compensation Cafe

Margaret O'Hanlon, CCP brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café. Earlier, she was a Principal at Willis Towers Watson. Planning to upgrade compensation management with new software?

Cafe Classic: Managers Can't Use Salary Surveys Wisely, and Other Urban Myths

Compensation Cafe

Editor's Note: One of the things we try to do here at the Cafe is uncover and challenge basic assumptions - our own and yours - about paying people. At least until now. Another important detail is that all employees are eligible for incentives.