Is Your Incentive Plan Effective? | Mercer Canada

Employee Rewards: Six Signs Your Incentive Plan is Not Effective

Our Thinking / Career /

Employee Rewards: Is Your Incentive Plan Effective?
Calendar25 January 2019

A well-designed employee rewards program is not about paying more to get better results—it’s about getting employees personally motivated to meet company targets, track KPIs that are impacted by their performance, and continuously outperform.

As an organization, these programs make you attractive to talent and competitive in your industry. They enable you to acquire, retain and motivate your workforce for the future and achieve better company performance overall.

Mercer discussed the impacts of employee incentive plans with senior management across Canadian businesses. Despite recognizing the importance of these programs, many businesses acknowledged the existence of unresolved problems within their incentive plan.

Some of the recurring feedback from employees included:

  • Confusion about how employee rewards were determined
  • Feeling a lack of distinction between average and strong performers
  • An expectation to receive annual bonuses as part of salary, rather than based on performance

Incentive plans can be complex, difficult to administer, and challenging to assess – but experienced, collaborative consultation can help you design a workable solution.

Begin by reviewing these six sentiments that signal the need to evaluate your incentive plan. Each signal is a starting point to address your organization’s particular challenges.

 

  Speak with a Mercer Consultant
We’re eager to speak with you. Please provide your details below.
*Required Fields

By clicking Submit, I agree to the use of my personal information according to the Mercer Privacy Statement. I understand that my personal information may be transferred for processing outside my country of residence, where standards of data protection may be different.