Variable pay has its ups and downsEmployers should not jump into rewards program without understanding caveatsBy Esther Huberman05/09/2011|Canadian HR Reporter|Last Updated: 05/06/2011 Employers should not jump into an incentive or rewards program without first understanding certain limitations and caveats and any potential financial impact, according to Steven Osiel, vice-president of total rewards at Pal Benefits in Toronto.“Each organization must be aware that improved performance alone does not always result in a desired outcome. For example, any of the following challenge a company’s success, irrespective of employee performance: an economic downturn, competitor challenges, manufacturing changes and social evolution.”For example, a salesperson may be rewarded for reaching a particular sales goal. But what if the raw ingredients required to build the company product increase in price? Or what if products are returned because of reduced customer demand? To Read the Full Story, Subscribe or Sign In Remember Me Forgot Password If you are a current Subscriber, please click here to set-up or update your login information.