State:
March 26, 2010
Avoid Delays Regarding Earned Incentive Pay

In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman provides steps and recommendations organizations can follow in managing incentive pay plans and also states the following reasons why organizations should not delay incentive pay that has been earned:

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  • In today’s economy, you have to find every opportunity to keep things positive on the job
  • If you give incentive pay or rewards months after employees hit their targets, you’ll lose out on the immediate impact of recognizing those workers while their triumphs are still fresh in their minds

Do everything possible to give incentives to your workers as quickly as possible after you’ve measured and confirmed that they have hit their performance goals. This is especially important with non-cash incentives such as merchandise that can sometimes take eight to 12 weeks or more to redeem.

Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. He can be reached at info@dankleinmanconsulting.com.

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