Incentive Plan Design
It is well accepted that well designed incentive programs sometimes erroneously referred to as "bonus" programs have the potential to increase sales results.
Incentive plans versus "bonus" plans
At Verge Strategy Group we ask these questions:
• "Are incentive plans and "bonus" plans the same thing?"
• "Are incentive plans capable of changing sales force behavior?"
Our experience suggests that incentive plans and "bonus" plans are very different entities and are capable of delivering vastly different results.
A "bonus" plan generally rewards an employee for achieving or overachieving a predetermined objective, with little regard to process, teamwork, organizational success, etc.
An incentive plan is designed to incent pre-determined actions in an attempt to change sales force behavior in a targeted manner.
Well designed incentive plans
• Drive overall organization performance
• Maintain focus on organization goals
• Build or maintain a pay for performance culture
• Motivate employees to overachieve
• Differentiate top performers and average performers
• Incent predetermined behaviors
• Ensure equity for all employees
• Are easy to explain, easy to understand
Please contact us to find out how Verge Strategy Group can help your organization to build a targeted, productive and successful incentive plan.
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