Incentive Compensation

The form that incentive compensation takes is limited only by your imagination. Several factors are critical to the success of an incentive compensation program. They are

• A clearly defined, well-communicated goal.

• A realistic possibility of success.

• Knowledge of the value to be created by achieving the goal.

• An idea of the percentage of value you wish to share with your employee.

• A feedback system that prevents unpleasant surprises.

• An agreement as to how the incentive will be calculated and when it will be paid.