Incentive Plans
Yesterday we talked about the need to engage B players just as much as A players are important. Today, I like to look at the subject of weighing pay incentives. While everyone agrees that incentive plans should motivate the employees to perform at a superior level; they should not encourage them to engage in questionable behaviour. The story of fire fighters being paid incentives to respond to emergencies in a timely manner resulted in a firefighter resorting to arson to claim the incentives is a good one to consider when we plan incentive plans. While we have talked about collaboration and the need to engage employees, incentives cannot be forgotten. The first step in devising incentives is to determine whether they are right for your organisation and your employees. Several white papers have been published by the Society of Human Resource Management to guide employees.