Deciding on your incentive payout cycle : the main points to consider

I have delivered quite a few sessions of my Expert Compensation & Benefits training recently. Whether I deliver it in Beirut, Kuwait, Doha, Kuala Lumpur, Namibia, or Morocco, I always make sure to talk about the payout cycle for incentives. Should we pay incentives annually, semi-annually, quarterly, monthly or even weekly ? A recent exchange with…

Caps and thresholds for Business Development roles?

One of my friends recently asked me this question : “I was hoping you could help me with a Sales Commission question. To set the scene, we want to target quality Business Development people – niche skill set and specialist experience for this engineering company, Hay level 19-20, on about AED 50,000+. For these type…

Reader Question – Should I pay a prorated bonus to an employee who resigned ?

Marta one of my readers just wrote to me asking me for advice on the following situation : “I’m HR Manager for a small Oil & Gas Contractor. Recently,  I’ve been facing quite difficult situation and need second opinion. We have a Project Manager leaving the company in June (resignation) and here comes the issue –…

A dinosaur in Dubai ?

I spent the week-end at the Emirates Airlines Festival of Literature in Dubai. If you live in the region, it is an event that I highly recommend you attend next year : a wide variety of speakers, on many topics related to books. There is a whole stream dedicated to children, and given the numbers…

Prospecting or existing customers ? What do you focus on in your sales incentive plan ?

“Need a sales comp plan that incentivizes prospecting, but does not increase the overall percent for my entire sales compensation. So, we’ll need a plan that pays more for new sales and less (or less over time) for sales to existing customers. Suggestions?” This recent question was asked on LinkedIn in the Compensation & Benefits…

Equity theory and the design of your incentive scheme

As part of the 16th annual Compensation & Benefits Forum organised by IIRME last month, I delivered a one-day workshop on how do design a recognition and retention scheme. I mention a few motivation strategies at the outset of the workshop. The equity theory in particular holds my attention. What is equity theory ? The…

What is the difference between a bonus and an incentive ?

A quick post today, on the difference between a bonus and an incentive. We often use these two terms without making a true distinction, but in truth, they are slightly different. Both of them cover elements of compensation that go above and beyond the normal, recurring income of the employee (base pay or basic +…