Incentive compensation plans are the foundation of many payment programs. When done right, an incentive compensation program can increase financial performance, improve employee engagement and bring an organization together. Adding a human touch to the compensation plan experience is one of the best ways a company can implement a strong incentive compensation management plan.
Clarify the link between personal performance and company success
Before launching a new ICM plan, executives can schedule meetings with individual sales people, emphasizing the relationship between their personal performance and that of the company. This clarification will show workers a company cares about their performance and the value they bring, Forbes reported. Not only will this solidify loyalty between employees and supervisors, but it will also give an executive the opportunity to field any questions about upcoming changes to a worker’s compensation plan.
Take a personal interest in an employee’s career growth
When an employee’s performance improves, not only will company revenues increase, but so will their happiness and productivity. The right ICM plan can act not only as a way to track employee performance, but as a way to show personal investment in an employee.
With incentive compensation software, employees can cater an ICM plan to directly benefit and encourage the career development of an individual. For example, an employee may be given a reward such as a gift card or bonus when they increase their personal sales performance by 10 percent. This will not only benefit a company, but show individuals their supervisors care about seeing them succeed in a real and tangible way. When workers feel supported and encouraged, they may become more productive, engaged and happy at the office. What’s more, these employees may want to stay at a company that supports their personal career growth goals, making a well developed ICM plan an important asset in employee retention.
