This blog is about online incentive programs
"More often than not, companies implement incentives for competitive, rather than strategic, reasons," he says. "It is important to discuss why the company needs to have incentives and what business objectives an incentive plan would support." This cross-functional approach can also help ensure that the company adequately translates high-level strategic goals designed to guide the entire company or an operating unit into workable measures that departments, functional groups and individuals can understand and relate to.
"You could create a disconnect [between employee efforts and incentive payouts] if you are too driven by the spreadsheet side of things," , SPHR, manager of compensation, benefits and HRIS for Houston-based Industries, which provides construction and support services to the oil and gas industries. "Everything has to tie back to the goals so that people understand how their actions drive profit margins and other areas of financial performance."
* Keep it simple. "If a plan is over-engineered or over-complicated, it could end with a large number of measures and be too complicated overall," . "If you keep the design simple, it will be easier for employees to see the link between what they have to do and what their payout will be and be able to do the math themselves. That is a great motivator."
To avoid confusion, companies might consider limiting incentives to two or three measures at most, says Berchelmann. Too many measures can confuse employees and fragment their attention and efforts.
On the other hand, relying on a single measure can also be dangerous because there are no other measures to lend balance. For example, if a safety incentive rewards managers only for a reduction in the number of accidents, managers may simply stop reporting accidents. A better idea might be to measure the cost of each accident and the cost and duration of workers' compensation claims.
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