How to Design an Incentive Scheme?

Incentives
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Wisdom Dorheame
Student (University), Ghana

How to Design an Incentive Scheme?

🔥NEW What are the main factors to consider when designing an incentive scheme of an organization?

  Jaap de Jonge
Editor, Netherlands
 

Factors in Creating an Incentive Scheme

Here are 3 main factors and some corresponding elements to get you started in preparing for the creation of an incentive scheme for an organization or a firm:

TYPE OF ORGANIZATION
- Profit or non-profit
- Large, medium or small
- What part of the organization is involved (its management, sales people, )

PURPOSE OF THE INCENTIVE SCHEME
Why does the organization (company) wants to reward performance through incentives?
- What specific business performance is it looking to improve?
- Is there a set of common design principles that can be applied?
- Which kind of employees will participate?

WHAT IS TO BE REWARDED
What specifically does the organization (corporation) want to reward? For example:
- Improved financial performance
- Certain behaviors
- Certain improved competence
- Adherence to the company values.

 

More on Incentives:
Summary
Forum
How Financial Incentives can Encourage Creative Ideas and Innovation
👀How to Design an Incentive Scheme?
Intrinsic Motivation AND Extrinsic Motivation
Reward Strategy for Financial Sales
What is an Inducement? What Types / Classes of Inducement Exist?
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