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March 25, 2010
Identifying Specific Goals for Incentive Pay Programs

In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman explains why it is important to manage incentive pay plans in the organization. One step towards managing incentive pay programs in your organization is to identify specific goals for incentive pay programs in your organization and this includes the following points:

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  • Ask yourself upfront what you want to achieve by offering incentive pay
  • Ask senior leaders, frontline employees, and everyone in between what positive behaviors they believe should be recognized in your workplace
  • Ask employees how they would like to be recognized. You might consider forming a working group of employees crossing numerous company levels, locations, and demographic ranges to serve as a sounding board for ideas. Be as transparent as you can about your goals (and even your budgets), so that the advice you receive from this group will be as helpful as possible
  • Finally, make sure you know what your goals are. Be as specific and as measurable as possible, before you design and roll out any new incentive pay programs for workers

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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