Factors in Creating an Incentive Scheme
Jaap de Jonge, Management Consultant, Netherlands
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.