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.
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