Incentive compensation plans' single purpose is to drive employee performance to achieve company objectives.
Successful incentive compensation plans are based on the following criteria:
- Incentives are based on no more than 3 metrics
- Incentives are based on metrics over which the incented employee has direct control.
- Incentives based on net profit are generally not successful or advisable
- Incentive payments should be paid close to the performance which generated the payment. In most cases this means monthly or quarterly
- Performance metrics should be easily measured and calculated by the employee
- Metrics which are measured should be readily available to the employee
These plans can be great motivators and improve employee morale.
I work with the owner and key personnel to identify those metrics which are controllable by employee performance and when improved move the company toward one or more of its objectives.
I have no one-size-fits-all solution and no canned packages. These compensation plans are custom crafted for your company and specific team members .
Contact me (337) 289-0307 to discuss how implementation of an incentive compensation plan can help you achieve your objectives, attract and retain good team members.