Discretionary bonus plans have their time and place in an organization. Discretionary bonuses are a plan in which management determines the size of the bonus pool and the amounts to be allocated to specific individuals at the end of the year. They work well when the...
When More Than Quantitative Incentive Criteria is Needed It is a common practice to select between two to five metrics to use for incentive criteria. Incentive criteria are usually a combination of financial, non-financial and strategic metrics. When the eligible...
by Tom Wilson One of Peter Drucker’s notable expression was: “Culture eats strategy for breakfast.” In fact, culture shapes behaviors, where plans and structures only attempt to influence them. Long-term incentives, compensation programs tied to a company’s future,...
By Susan Malanowski Short-term incentive plans have a performance period of one year or less. The most common performance periods are annually and quarterly. For 2019 calendar year plans, the last quarterly or annual payment was made by March 15 of this year in order...
Too many measures “Less is more” when determining the criteria or metrics to use in the plan. Plans with 3 to 5 measures can provide balance and focus. Too many measures dilute a participant’s attention and motivation. Metrics with a weight less than 10% of the total...
According to a recent study by Wilson Group, Concord, MA, and Bose Corporation, New England companies are expecting modest growth in their business. Sixty-two percent (62%) of companies recently surveyed expected growth exceeding 4% in 2017; this compares to only 44%...
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