There are many incentive plans being used in corporate settings that date back years. These plans may still seem effective to business leaders, but in reality, they could be costing firms more money to maintain than they would if companies overhauled the process. Some organizations are taking action to create new, more compelling incentive compensation management strategies and apply these opportunities to their sales force. As they do, companies could see that these organizations are able to encourage better performances out of their personnel.
According to PricewaterhouseCoopers, going with simpler compensation solutions is one of the most desired options among high-ranking employees. An infographic from PWC showed that more than half of all personnel want a clear and concise path to their rewards. They need to know exactly how much they'll be getting, when to expect it and how it will be delivered. In cases where older incentive plans may make it hard to understand what rewards are available or how well they're progressing on the track toward these bonuses, it may be difficult to even get workers to participate in these programs.
Even when everyone is onboard with a more arcane compensation plan, it may not yield the kind of benefits to productivity that organizations need to experience in order to validate having these programs in the first place. That's because while two-thirds of staff members value the chance to participate in whatever compensation options a firm offers, half of all participants stated they didn't feel their businesses were providing compelling incentives.
Creating the right momentum
It's not all about the pay, either. The source showed that one-fourth of all high-level personnel would be willing to take a salary reduction in order to get their dream jobs. A similar number stated that they would be happy if their compensation solutions at least made them feel like they were earning more than others in similar spots, even if that wasn't the case. The importance of incentives requires that organizations balance the real and perceived value of what they're offering employees in exchange for a job well done.
A deciding factor in these scenarios is how well management is conveying to employees the total scope of an incentive plan. Businesses need compensation management solutions that allow personnel to see what goals they're working toward and how well they're progressing. Using software tools that present this data to staff members can help get them more engaged in a plan and produce more effective increases in performance and productivity than older resources.