Striving for simplicity with incentive pay

Well-defined targets, measures and objectives key
By Michael Hiles
|Canadian HR Reporter|Last Updated: 05/06/2011

Incentives have become popular in recent years. No self-respecting owner or manager feels she is managing effectively unless some kind of incentive scheme is part of the arsenal.

However, many managers’ analytical basis for supporting incentives is based on a mixture of hearsay, wishful thinking and knowledge gaps.

The central idea behind incentive programs — rewarding employees for performance — has a long history, particularly in sales compensation. Commission schemes have elements to recommend them for other incentive pay programs: