The success of any plan is all in the design but no matter how well your plan is designed it’s ineffective without appropriate, measurable performance goals and regular objective reviews.
We have some tips below to help review your plan and get you back on track.
Ensure the plan is linked to your company strategy and goals
This might appear simple but make sure you review the link on a regular basis, businesses evolve over time and focus can change.
Drive and reward the correct behaviours
Make sure your plan is aligned to the culture and values of the organisation. Aspects such as customer service and retention of clients can be overlooked, with some plans only focusing on sales revenue. Ensure you are rewarding the correct behaviours and driving long term sustainable growth.
Pay for performance and reward your top performers
Review where you have set your thresholds and model what good to great performance looks like. The best way to do this to use historical data and recreate your varying performance levels, then model the pay-outs. Consider whether each level of payment looks attractive and is competitive against the market for each role. Is there enough of a jump in reward between your average performer and your star performer.
Performance measures and targets must be clear, achievable and transparent
Communication is key here. You must be able to demonstrate how you have derived your targets and that they have been divided up fairly between the team. We recommend employees have access to an on-line incentive calculator, showing current performance and projected payouts. Gaining buy in from the team will ensure your plan’s success.