A prescription to heal your bonus plan

First-aid for short-term incentive plans
By Jackie Goldman and Arden Dalik
|hrreporter.com|Last Updated: 08/01/2003

I

s your bonus plan feeling tired and run down? Is it stuck in a rut?

If it’s any consolation, your plan is not alone. There appears to be an epidemic of short-term incentive plans desperately in need of some first aid and, in some cases, major surgery. In this article we explore some of the common bonus plan ailments and how to diagnose them. Then, depending on the condition of the plan, we look at a number of steps organizations can take to get the plan back on its feet; or more importantly, back to helping drive and reinforce the business strategy.