When designing a Performance-Linked Pay & Incentives System many factors must be taken into consideration. Factors such as the nature of business, type of technology, culture of the company and HR Strategies of the organization.
Thus, Performance-Linked Pay & Incentives System are custom-tailored for each organization by Origin Consultants.
Origin Consultants believe that performance linked pay, if used in isolation, may have a very negligible impact in motivating employees for higher performance. One needs to create the perfect environment and appropriate conditions in the organization to design and successfully implement Performance Linked Reward Systems.
There are several types of performance-linked pay & incentive schemes. Origin Consultants Compensation & Benefits Team generally custom design schemes that may be for Individual Employees, Teams, Sales Departments, Groups, to ultimately improve enterprise’s performance and profits.
- Incentives Scheme for Support Staff & Sales Teams
- Bonus Pay based on the Performance of the organization
- Group Incentive Scheme to reward the performance of Teams
- Retention Bonuses to retain critical / top talent
- Profit Sharing for Key Employees
Origin Consultants critically and carefully plan the performance-linked pay & incentive schemes keeping in mind the following aspects:
- The parameters of performance must be determined in accordance with the objectives
- Norms or benchmark values for each parameter must be clear.
- The performance-reward relationship must be determined.
- Fixing the weightage as per the relative importance of the selected parameters.
- Designing the complete process and related formats.
- Ascertaining the maximum payable incentive amount and payment period
- Formulating an effective communication and review mechanism
Effective communication mechanisms, a performance driven culture, competitive spirit, training and development of employees, and a mix of non- monetary incentives along with an efficient performance management system must all be in place to support an effective Performance Linked Pay System.
Reach out to Origin Consultants Compensation & Benefits Practice today to understand the dynamics and benefits of Performance Linked Pay & Incentives.