Designing Effective Incentive Schemes
Course overview:
As key components of your company’s total rewards programme, incentives and performance-based pay schemes can critically impact the achievement of your business objectives, and your employees’ motivation. We lead you through our best-practice approach, ensuring you leave with practical skills to help you execute effective incentive schemes.
Who should attend:
This seminar is designed for HR professionals, finance professionals, sales managers and operational managers.
What you will learn:
Module one: The Role of Variable Pay
- What do we mean by variable pay?
- Common types of variable pay schemes
- The role of variable pay within the total remuneration & reward structure
- Effective use of variable pay to achieve business goals and objectives
- Common misconceptions
Module two: Key Steps in Developing an Effective Incentive Scheme
- Determining eligibility
- Creating effective performance measures & criteria
- ‘At-risk’ versus ‘Cherry on the top’ designs
- Setting thresholds and caps
- Funding the scheme
- Testing and financial modelling
Module three: Design Options
- Practical examples of variable pay scheme designs
- Choosing the appropriate scheme to achieve your business objectives
- Developing a communication strategy
- Tips and tricks for a successful implementation
Module four: Assessing Scheme Effectiveness
- Key steps in assessing effectiveness – establishing a project team, developing review criteria, implementing changes and communicating results
- How to recognise a failing scheme and what to do about it
- Calculating the return on investment
These modules are designed to build on each other and provide you with the toolkit you need to manage remuneration effectively in your organisation.
[back to top]