When Incentive Pay Goes Rogue!
SEPTEMBER 13, 2016
A friend of mine likes to say: “It’s not that incentive pay doesn’t work well, it’s that it works TOO well. Like any well-designed incentive compensation plan, Wells Fargo’s started with a strong company culture and a simple goal that required special effort.
Incentive Pay is Like a Par 4 Golf Hole
MARCH 27, 2017
Executive Compensation Incentives/Bonuses Pay for Performance Sales Compensation Stock/Equity Compensation bonus equity compensation golf incentives LTI par 4 performance units sales compensation sales pay short term incentive
[Infographic] Top 10 Best Workplace Incentives
JANUARY 23, 2017
Vacation bonuses. But are incentives like these actually worth it? Morale-boosting workplace incentives will reduce turnover and its associated costs. Many companies hesitate to start incentives programs because of the costs it will incur. Gourmet meals. Game rooms.
How To REALLY Design an Incentive To Drive Behavior
What is Paul Thinking
JUNE 22, 2016
Incentive for Reducing Travel Costs. If you do all three, you get a bonus of 20 points.” This company was using the article as a way to communicate to potential clients that using points-based incentives are the way to reduce travel costs.
Compensation Cafe: The Contradiction of Annual Incentives
FEBRUARY 16, 2016
Incentives are only effective when they match the timeframes of employees’ motivation to perform. In light of a recent Willis Towers Watson report on the ineffectiveness of annual incentives, I wanted to take a closer look at how and why they motivate employee behavior. By Derek Irvine.
The Real Cost of Mismanaged Incentives: Wells Fargo
SEPTEMBER 29, 2016
Today is a steaming jolt of quadruple espresso in response to the Wells Fargo incentive pay mess. If you have been under a log for a couple of weeks, please start by reading a couple of earlier Compensation Café Articles (my own When Incentive Pay Goes Rogue!
An Unpopular Sales Incentive Plan Design Fiasco
JULY 21, 2016
The new sales incentive plan was not well received. Their disapproval disappointed the corporate headquarters compensation experts tasked with the duty to faithfully but delicately comply with the incentive program guidelines supplied by the division's senior management.
When do workplace incentives become disincentives?
MARCH 9, 2016
Does your incentive program bolster company culture or diminish it? Guest poster Catherine Spence explores how companies can design incentives that strengthen engagement and reinforce organizational values. . _. Avoiding Impotent Incentives.
Do You Know What A Bonus Is?
TLNT: The Business of HR
NOVEMBER 3, 2016
Bonuses Compensation & Benefits Incentives Pay for Performance Pay Increases & Raises Wages, Pay, & Salary FeaturedI’ve had an important lesson reinforced for me.
The Tricky Business of Incentive Compensation
FEBRUARY 4, 2016
One solution has been to implement incentive compensation or “pay for performance” plans. For adherents, incentives can motivate managers to engage in behaviors that are slightly outside the scope of their everyday role and tackle risks that are more directly aimed at improving performance.
Autonomy, Incentives and Motivation
OCTOBER 22, 2015
With this kind of autonomy, monetary incentives reinforce intrinsic motivation. Even competitive incentives awarded on a discretionary basis have this reinforcing effect. Incentives are not viewed as an instrument of control.
Double the Incentive – Reduce the Impact
MAY 26, 2015
I am a fan of incentives. Incentives are great when seeking to break behavioral inertia. Incentives are very powerful. Great care should be used when designing incentive programs. Google Tries Incentives and They Failed What? Are Incentives the Answer?
Cafe Classic: Reviewing Your Incentive Plan: A Three-Tiered Conversation
JULY 15, 2016
Editor's Note: Reviewing existing incentive plans is part of the job for many of us. Many of you are - or will soon be - in the throes of reviewing your employee incentive plan, trying to determine how (and in some cases. Incentives/Bonuses
When Substantial Financial Bonuses Backfire
FEBRUARY 16, 2016
Recently, The New York Times’ Business Day featured an article discussing the bonus culture on Wall Street. According to a prediction report from Johnson Associates, Bonuses in the financial industry last year were expected to fall 5-10 percent… Nathaniel Popper, The New York Times.
Is Santa Administering Your Incentive Plan?
DECEMBER 15, 2014
The end of the business year, when managers everywhere turn their thoughts to – bonuses! I’ve seen senior executives manipulate, excuse me, adjust financial results to ensure that their own bonus awards wouldn’t be reduced. Compensation Philosophy Incentives/Bonuses
Woulda, Coulda, Shoulda: An Incentive Compensation Story
FEBRUARY 4, 2015
Not the least of them was the creation, design and management of the company’s long-term incentive program. She also combined all of these skills to build and manage her incentive compensation plans. This year the two main incentive plans did not perform as expected.
Best employee incentive programs for health & fitness
MAY 19, 2016
Incentives are essential. The Wall Street Journal reports “Nearly 90 percent of employers offer wellness incentives or financial rewards or prizes to employees who work toward getting healthier.” Diverse approaches to employee incentive programs. Individual incentives don’t invite team effort or competition, but people who prefer to make such efforts privately will appreciate receiving an individual bonus.
Sign-On and Retention Bonuses Reach All-Time High
JUNE 26, 2014
The use of sign-on and retention bonuses appears to be at an all-time high, according to a recently released WorldatWork survey on Bonus Programs and Practices. Note in particular that the use of retention bonuses has nearly doubled since 2010! Retention Bonuses.
Time, Value and a Bonus
JUNE 2, 2015
We discussed the impact of bonus accrual accounting standards on balance sheets. The accruals cost us millions, but the executives value their bonus at a fraction of its face value.” We then spent two hours discussing that statement. Pressures on bonus structures.
Why Rewards & Incentives Do Make People Work Harder
JUNE 13, 2016
It’s also a chance to offer the right rewards and incentives in exchange for productivity and performance. Understanding how providing the right rewards and incentives at your workplace will help your employees visualise success in the long term. Why should we provide rewards and incentives? The push to finish work is exhausting and the thing that can motivate you to push through is an incentive. Types of rewards and incentives.
Friday Five: Year-End Bonuses
DECEMBER 11, 2015
Between scrambling to finish our holiday shopping, avoiding embarrassing ourselves at the office party, and planning our spring vacation – soon, friends, it’s coming soon – we’re busy seething over someone else’s year-end bonus. It’s that time again.
Hot topic: Paying bonuses
OCTOBER 6, 2016
There's an interesting piece in HR Magazine today questioning whether bonuses are an effective reward mechanism. The article includes comments from Craig Newman, chief executive of Woodford Investment Management which gave up paying bonuses last year.
Incentive Compensation Management Software
FEBRUARY 25, 2016
Incentive compensation planning takes the concept a step further. Incentive Compensation is variable pay that is given to deserving candidates for exceptional performance. When done right, incentive compensation: Pushes all employees to give their very best.
Annual bonuses: How much do they actually incentivize employees?
MAY 26, 2015
Do you give your employees big annual bonuses as a reward for their work? If so, you have plenty of company: It’s common to rely on annual bonus plans to build employee motivation and pad salaries. Most bonuses, however, only come 1-4 times per year.
Give a Bonus of Heartfelt Appreciation This Year
DECEMBER 12, 2014
Even after a difficult year, giving employees the appreciation and recognition they deserve is an important bonus. Employees were rightly concerned that years-long traditions around holiday bonuses might not materialize. I didn’t expect [a Christmas bonus] at all.
Best of the Force: Is the Purpose of Incentives to Motivate People?
MARCH 10, 2017
Article after article tells us that we should halt our use of incentives because people aren't motivated by money. Many of the incentive arguments centered around whether or not money motivates people reflect a wrongheadedness about the role of and reason for variable pay.
8 Ways the Minneapolis Skyway is Like Incentive Compensation
MAY 22, 2015
After using the Skyway to get from my hotel to the conference site, I realized that the system was exactly like incentive compensation. Simply replace the word “Skyway” with “Incentive Plan” and you’ll easily see the lesson learned.
Money Meet Mouth – Should Executive Bonuses Be Tied to Employee Engagement?
APRIL 23, 2015
A company has actually set up a bonus system for Executives based on employee engagement. Once results started coming in, Havas Creative Group global CEO Andrew Benett baked it into CEO bonus schemes. The bonus is paid out when the engagement score moves up 5 points.
Promotions, Bonuses, Raises, Recognition - When They Work (and When They Don't)
DECEMBER 8, 2014
You can’t give all employees promotions, bonuses, or raises. Bonuses. Bonuses are a deeply embedded part of the compensation plan in many companies – especially at this time of year. It’s quite nice to receive a bonus, to know that what I do matters.
Is “Annual Incentive” a Contradiction in Terms?
FEBRUARY 15, 2016
In the best cases, these schemes are designed to differentiate among performance levels, rewarding effort and results with annual merit pay increases and other annual incentives. There is a design element to explaining the ineffectiveness of annual incentives.
Using nontraditional incentives to motivate your employees
MARCH 11, 2015
Direct compensation consists of things like cash money and bonuses; indirect compensation consists of things other than cash money, including benefits, rewards programs, and long-term incentives. Incentives keep employees engaged and feeling rewarded for a job well done.
Acting Our Way to Employee Engagement. Are Incentives the Answer?
MAY 14, 2015
Overall, study participants who enrolled in any of the four incentive-based programs were nearly three times more likely to quit smoking than those who received usual care alone. The net-net is: Incentives work. Incentives with penalty work better. Are Incentives the Answer?
Is Your Annual Incentive Pay Plan the Right Fit for Your Business?
NOVEMBER 23, 2015
You need to develop an effective incentive plan. Overall, the most common strategy is an annual incentive pay plan. But is an annual incentive pay plan really the best way to motivate employees? How an annual incentive pay plan works.
Singing, Dancing and Posing: Aligning Incentives, Performance Metrics and Strategic Objectives
APRIL 17, 2017
Managers will receive bonuses tied directly to their survey scores. However, a substantial amount of research suggests that incentive pay has attention-directing effects that influence an employee's experience with performance measures. Image courtesy of Electronic Arts.