CONSULTING
Incentive/Bonus

Organizations in all sectors – private, not for profit and public sector are firmly embracing the concept of pay for performance as a key design principle in building base pay and bonus/incentive compensation programs. At the same time, employees want and expect their performance contributions to be recognized and rewarded. In fact, the broad definition of Total Rewards includes pay, benefits, rewards and recognition, work life balance and learning and development. Recognition and incentive compensation plans are key programs that help to define an "Employer of Choice" and/or "Best Practice" employer.

Organizations face increased pressure for improved operational efficiencies and higher levels of productivity. For the employer, the incentive/bonus plan provides an framework to define communicate and reward key performance objectives at all levels – ranging from the highest organizational level right down to the efforts of each individual person. From this, employees can efforts individual efforts towards achieving goals that “make a difference”, and to be recognized and rewarded when goals are achieved.

As organizations sharpen their ability to develop effective performance goals measures at all levels, these goals and measures provide essential linkages to individual incentive plans, team incentive plans, other forms of non-cash recognition as well as base pay and performance management programs.

We work with our clients to:

  • Assess the appropriateness of incentive/bonus and pay for performance plans within your organization.
  • Identify the key performance measures or business drivers that the organization wishes to define and measure
  • Determine eligibility for an incentive/bonus plan and other forms of non-cash recognition
  • Work with you to determine the best type of incentive plan that best fits the strategic goals of your organization.
  • Build an appropriate total compensation package by align the incentive compensation plan with the base pay plan
  • Determine the design criteria for the incentive compensation plan (i.e. measures, eligibility, formula(s), ratio of base/incentive by career level, competitive positioning in relation to the internal market and other key design criteria)
  • Provide management training on goal setting, performance reviews, documentation and personal development objectives
  • Develop a communication program