There are a number of ways that organizations can change their sales incentive compensation plans, but not all of them are ideal for maintaining morale and keeping employees engaged. Dropping benefits or reducing payouts can be detrimental to staff loyalty and satisfaction, but these are not the most blatant reasons for reduced enchantment with an employer. In fact, workplace environment and outside factors can weigh more heavily on workforce consciences than basic reward reductions, so coming up with plans that take these changes into account is essential.
Monitoring money matters
That has been an issue for UNC Health Care, Triangle Business Journal reported. The source stated that the medical insurance provider recently had to cut its payouts to personnel, citing a new formula the firm is using for calculating its monetary awards. This year's total compensation plan was adjusted to $10.1 million from $11 million the year prior, with individual awards ranging from $65 to $4,959. The company employs about 300 more people this year than it did over the 2011 fiscal year, making it essential for keeping operating costs in check for leaders to cut the compensation rates.
These minor adjustments were also based on new metrics for evaluating employee output, the source noted, thereby making it easier for staff to determine if their work is improving or not in terms of overall quality and quantity. CEO Brian Goldstein told the source that there have been no significant differences in overall performance figures in light of the change, though there are plenty of programs in place to ensure that this trend remains ongoing in the future.
Boosting basic incentives
Creating a more favorable work environment may make up for lower end-of-year payouts. Monetary incentives can foster an immediate response in overall output and engagement, but it doesn't promote an ongoing positive interaction between employees and their organizations. To bridge this gap, firms should focus on the kinds of rewards that benefit the company as well as staff members.
LinkedIn wrote it's best to use intrinsic motivators, ideas and objectives that reflect the long-term goals of both workers and employers. These kinds of rewards include health plans, career strategizing and workplace opportunities that are not otherwise accessible to basic staff. These kinds of compensation tools also make workers healthier and more knowledgeable, thereby providing employers with more substantial returns on staffing investments.