Incentive and Bonus Plans
Questions to Ask
Description of Service
A formal incentive compensation plan is structured to provide compensation based on attainment of certain goals and includes sales compensation, company-wide incentives, gainsharing, value-added, and other plans.
A metal forming job shop desired to have a plant-wide incentive compensation to reward for improvements in productivity. Results -- Productivity increased over the short-term by 13 - 17%, and employees were paid incentive compensation biweekly. Over the longer-term, the company became recognized as "a place to be employed" because of its reward systems.
A pharmaceutical manufacturer desired to have a bonus plan designed to tie the attainment of strategic goals to compensation. Results -- Management activity was more focused on the specific tasks associated with the goals and objectives of the long-range plan and management bonuses were based on personal and group achievement.
A wood molding manufacturer wanted an incentive plan for plant and supervisory personnel. A gainsharing and a value-added plan were designed and installed. Results -- Productivity improved, communication among the various work process groups improved, and both employees and supervisors were monetarily rewarded for improved operations, productivity, and profits.
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