SilverLink - Spring/Summer 2008 - (Page 24)

Key Ingredients to a Successful Incentive Plan2 $ Proper decision-making authority $ Competitive base pay $ Resources needed to perform high-quality work $ Bonuses tied to company performance $ Managerial guidance so that employees understand his or her impact on company success $ Bonuses tied to individual performance $ Managerial articulation of goals/direction $ Challenging and achievable bonus/performance goals $ Base pay increases ties to individual performance Compensation is a signiﬁcant reinforcement and change tool that must support desired behaviors and actions. Properly designed incentive plans can help make a real difference in an organization’s performance and productivity. Line of Sight Organizations that utilize formal performance measurement strategies—including the use of incentives—are more likely to experience positive results than those who do not have such protocols in place. High-performing companies recognize that to have a successful incentive program, employees need to be engaged, and must clearly understand the “line of sight,” which is the employee’s perception of the degree to which his or her contributions inﬂuence improvement. Employees appreciate having the ability to track progress toward goals. “I accomplished ‘X’ and my reward was ‘Y’” is a powerful motivator. Understanding an incentive’s cause and effect is a true measurement of the effectiveness of incentives. 1 Zingheim, Patricia K., Ph.D. and Schuster, Jay R, Ph.D., “Revisiting Effective Incentive Design: Still The Major ROI Reward Opportunity,” WorldatWork Journal, First Quarter 2005, Volume 14, Number 1, C12-RES 4.6, used with the permission of WorldatWork. Sung, Amy and Todd, Emory, “Line of Sight: Moving Beyond the Catchphrase,” Workspan, October 2004, Vol. 47, No. 10, (WorldatWork), C12-RES 4.1. 2 Additional material for this article was inspired by Scott, Dow, Ph.D., “Incentive Pay: Q&A with Dow Scott, Ph.D.,” from Incentive Pay: Creating a Competitive Advantage, WorldatWork Press (2007), pp. 62 ff. CONTACT ROX ANNE KRASNO AT 402.96 4.5548 OR RKRASNO @ SSGI.COM 24

Table of Contents Feed for the Digital Edition of SilverLink - Spring/Summer 2008

SilverLink - Spring/Summer 2008 Contents Risk Management: Mitigate & Educate Disastrous Distractions Accounts Receivable BoomerCare Risk Reduction, What’s Your Function? Time Out! Double Down Employee Benefits: Who’s Paying Whom for What? Time to Reconcile Keep Your Eye on the Pension Prize Show Me the Money Private Client Services: A Generous Strategy Is There Any Good News Left? Special Insurance for Special Times Client Spotlight: Omaha Performing Arts Internal Happenings: SilverStone Group Wellness Activities Group

SilverLink - Spring/Summer 2008

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