The Intent to Incent is Our Sun

Compensation Cafe

Incentive plans are one of the most complex aspects of pay and rewards. All of these simply orbit around the most important element of any effective incentive plan. The purpose of an incentive plan can only be absolutely clear if we avoid assumptions.

What Incentives Can Do, What Incentives Cannot

Compensation Force

Incentive compensation. Incentives are dangerous, and not just because people game them. Incentives are like that jet engine. Yet incentives are still the first resort of most managers, perhaps because they all think they’re smart enough to create the perfect carrot.

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Incentives and The Rule of Three

Compensation Cafe

Designing an effective incentive plan is always a challenge. Over many years I have come to rely on what I call the Incentive Plan Rule of Three. No more than three metrics (KPI), no more than three defined goal levels, no more than three incentive plans for any one individual.

Cafe Classic: Is it Safe to Incent Safety?

Compensation Cafe

Should rewards be used to incent greater attention to safety? Is it a good idea to include safety metrics in a broad-based employee incentive plan? I recently came across an interesting article in Incentive Magazine about safety incentives.

Behavior Bonus: Performance Enablement

Kazoo

While the Kazoo Employee Experience platform is primarily driven by spontaneous, timely employee recognition — some employees want specific incentives and directions for their behavior. This is where our Behavior Bonus functionality comes in. Using Incentives for Performance Enablement.

Why is Three the Magic Number for Incentive Plan Metrics?

HRsoft

The Rule of Threes states that there should be no more than three metrics involved with any incentive plan. But what makes the number three so powerful when it comes to incentive plan design? Finally, focusing on just one or two metrics could work well in theory.

Employee Incentives: Good or Bad?

AbelHR

One such benefit that has been shown to really catch the interest of employees is that of incentive programs. To start with the basics, employee incentive programs are any program designed to provide your employees with recognition and appreciation.

Can Your Employees Make a Difference? What Does Your Incentive Plan Say?

Compensation Force

I am floored by how many times, during the design of an employee incentive plan, management will trot out the assumption/foregone conclusion that individual employees are unable to make a meaningful contribution to overall organization - or business unit - performance measures.

Singing, Dancing and Posing: Aligning Incentives, Performance Metrics and Strategic Objectives

Compensation Cafe

How clear is the line of sight between your performance pay programs, strategically linked performance metrics and the organizational strategy? Managers will receive bonuses tied directly to their survey scores. In addition, a bonus was awarded based on specific performance metrics.

3 Reasons Why Metrics Go Wrong

Compensation Cafe

Sadly, in some areas over the years, that’s become twisted to focus on the metric and not the behavior or goal underlying the metric. Jerry Muller, history professor and author of The Tyranny of Metrics, recently elaborated on this challenge in an article in Aeon.

Incentive Plans Work Too Well (here’s the trick)

Compensation Cafe

It's not that incentive plans don't work well, it's that they can work too well in motivating unintended consequences. Are any incentive compensation experts shocked by this? The failed Wells Fargo incentive plan and Tax Reform are similar.

Money for Motivation: How Incentive Based Pay Works

UpstartHR

We want to instantly think that we can drive performance or discourage behaviors through monetary incentives. Here are a few: Bonuses. Group incentives. This is important, because you have to be offering incentives for the right thing.

Woulda, Coulda, Shoulda: An Incentive Compensation Story

Compensation Cafe

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.

Cafe Classic: Is Your Incentive Plan Strategy-Negative?

Compensation Cafe

Editor's Note: Do you design incentive plans to undermine your organization's business strategy? We talked through an example of how the plan metrics present themselves to a typical employee and the kinds of day-to-day employee choices that the plan might drive as a result.

Incentives Without Teeth

Compensation Cafe

The title of this post probably had you thinking about incentive plans that required real goals to be met before payment was earned. Many companies have incentive plans without links between individuals, teams, departments and the company as a whole.

Long-Term Incentives for a Short Term Generation

Compensation Cafe

Second, this means that the majority of these workers do not intend to benefit from the entirety of their Long-Term Incentives (LTI). Designing LTI to attract, motivate and retain the “next” generation: Opportunity 1: Consider “Mid-Term Incentives” that link to Long-Term Incentives.

Cafe Classic: Reviewing Your Incentive Plan: A Three-Tiered Conversation

Compensation Cafe

Editor's Note: Reviewing existing incentive plans is part of the job for many of us. One of the temptations we encounter is to try to benchmark our way into the right plan structure and metrics - looking externally at so called "best practices" in order to figure out our next design move.

7 Free Team-Building Ideas for Your Corporate Incentive Programs

Kazoo

But corporate incentive programs often recognize individual contributions more than teamwork. So how do you design corporate incentive programs that both encourage individual performance and build team spirit? Dedicate 50% of your corporate incentive programs to team recognition.

Annual bonuses: How much do they actually incentivize employees?

Achievers

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.

9 Ways to Create the Best Possible Employee Incentive Options

Kazoo

As an employee incentive, cash isn’t king. As part of Kazoo’s research on rewards and recognition systems that work, we uncovered how to make employee incentives effective. Here are nine ways to create the best possible employee incentive options at your company.

Using Incentive Compensation Software to Drive Performance

HRsoft

Incentive compensation is the process of paying employees based on the performance of an entity. For this reason, many organizations have increasingly turned to incentive compensation software. Incentive Compensation Examples. Incentive Compensation Best Practices.

Ensuring The Success Of Your Channel Incentive Program

Workstride

Organizations that go to market via indirect channels tend to understand the value in having a channel incentive program to motivate sales representatives, partners, or dealers. The objectives you set for your incentive program should focus on both quantitative and qualitative measures. Many companies rush to develop an incentive program because their competitors have one in place. Incorporate training as a qualifier to participate or as a bonus.

Employee bonus programs: What’s right for your company?

Insperity

If you think your business is too small for an employee bonus program, consider these two questions: Have you noticed less productivity or a decline in employee morale? A meaty bonus program could do the trick. But, before you hit the ground running, take a moment to dive into what kinds of bonuses are out there, as well as what goes into creating a bonus program. Employee bonus program basics. First things first: How are employee bonuses defined?

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

Compensation Cafe

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.

Cafe Classic: Is it Safe to Incent Safety?

Compensation Cafe

Editor's Note: Continuing our end-of-summer Classic week here at the Café with the question "are incentives equally applicable to -- and appropriate for -- all areas of human endeavor?" . I recently came across an interesting article in Incentive Magazine about safety incentives.

Best of the Force: In a True Talent Partnership, Value Creation Should Drive Incentive Design

Compensation Force

I'm convinced that the only way to create smart, sustainable incentive compensation plans is to tie them directly to value creation. That doesn't mean, however, that incentive plans should necessarily be built entirely on financial performance metrics.

Best of the Force: In a True Talent Partnership, Value Creation Should Drive Incentive Design

Compensation Force

I'm convinced that the only way to create smart, sustainable incentive compensation plans is to tie them directly to value creation. That doesn't mean, however, that incentive plans should necessarily be built entirely on financial performance metrics.

Best of the Force: The Perils of Stretch Goals and High Incentive Hurdles

Compensation Force

Dan Markovitz's HBR blog post, The Folly of Stretch Goals , brings to mind a development in my own management incentive plan design work over recent years, as my clients and I address heightened concerns about risk and unintended consequences. What does this mean for incentive design?

Best of the Force: The Perils of Stretch Goals and High Incentive Hurdles

Compensation Force

Dan Markovitz's HBR blog post, The Folly of Stretch Goals , brings to mind a development in my own management incentive plan design work over recent years, as my clients and I address heightened concerns about risk and unintended consequences. What does this mean for incentive design?

3 Practices for Effective Bonus Administration

HRsoft

When executed effectively, bonus administration can incentivize improved performance. However, mastering bonus pay isn’t always easy. For this reason, we’ve gathered a few helpful tips to help you ensure you’re planning your bonuses to make the best possible impact on your workforce.

Bonuses Remain the Top Priority for Raising Compensation

Compensation Today

While companies may not be raising salaries as progressively as desired, they are turning to other means to increase the compensation for their most-deserving employees by offering bonuses. Are employee bonuses the new compensation strategy? Will more employers offer bonuses?

The Elements of a Strong Incentive Plan

HRsoft

Designing, managing, and communicating incentive plans are some of the most challenging hurdles HR and compensation teams face today. Likewise, good incentive plans are well-balanced, can be easily understood by employees, and are difficult to game.

Why Every Organization Should Have No More than Three Incentive Plans

HRsoft

In the pursuit of meeting every employee’s unique needs and expectations while incentivizing key performance outcomes, some organizations design and implement a number of robust incentive plans. Blog compensation communication incentive plans pay for performance

Common Incentive Plan Challenges & Effective Ways to Address Them

HRsoft

When preparing for and designing incentive plans, organizations tend to run into three main challenges. For this reason, having many people on a committee to help design an incentive plan can leave you with dozens of metrics to consider. This principled approach to incentive planning states that: Each plan should have no more than three metrics. No employee should have more than three incentive plans which apply to them.

5 Employee Incentive Ideas that Boost Employee Motivation

Kazoo

Finding employee incentive ideas that boost talent recruitment, retention, and development is like finding a golden ticket for business success. Yet most traditional employee incentive plans don’t work for longer-term employee retention or talent development. Motivation-Boosting Employee Incentive Ideas. Tie Incentives to Spontaneous, Real-time, Specific Recognition. How many employee incentive ideas offer that?