The Dos & Don’ts of Pay for Performance & The Rewards Associated With Correctly Implementing Incentive Systems

Author:

Pay for performance programs are used as a means of staying healthy and competitive in today’s environment of shrinking resources and increasing talent competition. In addition to other incentives, an annual bonus program provides companies with opportunities to financially reward employees for their contributions each year.

According to a recent Best Practices’ study, more than 95% of pay for performance companies list driving growth and retaining talent as the main business reasons behind using an annual pay-for-performance bonus strategy at their company.

Although there are many incentives to reward systems, smaller bonus pools, unfair distributions, misalignment of goals, complex global administration, and other obstacles can plague the integrity of the system, ultimately sending talent out the door. Pay for performance programs are one tool organizations are using to try to retain top performers.

Despite this, many executives are still experiencing implementation challenges and pitfalls when trying to re-deploy their incentive system. To help compensation organizations understand how other industries and high-performing companies deploy their pay for performance systems, research and consulting firm Best Practices, LLC conducted a study that used evidence-based benchmarks to evaluate incentive systems with the goal of identifying strengths, gaps and improvement opportunities.

View our SlideShare presentation below to learn more about pay for performance programs!

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: