Tying Metrics to Compensation

If you remember only one thing from the presentation, remember this:

If your incentive plans incorporate these three elements they will be more effective:

- Autonomy
- Master
- Purpose

The broad objectives for the presentation are as follows:

- Gain and understanding of different methods of designing effective incentives.

- Develop meaningful KPIs specific to your organization that relate to incentives.

- Gain an understanding of a framework for creating a dashboard system for your organization that will enhance engagement and understanding of your plan and incentives.

Performance and compensation are traditionally measured against targets that are fixed, agreed upon in advance and the result of negotiation. In a nutshell, incentives are traditionally tied to the budget. Traditional budgeting is broken, as are the incentives included in them.

Best-in-class companies use relative measures and focus on incentives that incorporate elements of motivation that include autonomy, mastery and purpose goals. By creating goals focused on these elements of motivation (autonomy, mastery and purpose) incentives can be aligned properly to elicit desired behaviors, driving higher performance and higher worker satisfaction simultaneously.

These changes require a paradigm shift, not just small incremental changes, so communication is a critical part of the equation and everyone involved in the process needs to communicate effectively throughout the process.

With some important exceptions, research has shown conclusively that high reward levels can lead to poor performance, yet traditional incentives are "carrot and stick" rewards. "If you do this, then you get that" type incentives are not used as extensively in best-in class organizations.

We will explore how different factors can be incorporated into incentives to drive performance and behavior to enhance employee engagement and bottom line business results.

Anyone involved in designing or managing incentives, including finance and corporate planning professionals who manage plans incorporating incentive compensation.

- Gain and understanding of different methods of designing effective incentives. - Develop meaningful KPIs specific to your organization that relate to incentives. - Gain an understanding of a framework for creating a dashboard system for your organization that will enhance engagement and understanding of your plan and incentives.

None. All materials will be provided.

		John Sanchez The FPA Group View Profile