Should we penalize employees for not taking action ?

Michael Haberman is a US-based consultant in HR and he writes one of the best general HR blogs around at Omega HR Solutions. My regular readers will know that I regularly feature him in my “Share the Knowledge” column, where I highlight the best reads I’ve found in HR, compensation, benefits, performance management, mobility, governance…

It’s easy, Sandrine !

Don’t you hate the managers who think they know more about Compensation & Benefits than you do ? They mean well, but this drives me crazy.  “I had the exact same situation at my previous company”, they say to me, and proceed to explain “So let me tell you what to do : you need…

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 +…

The 3 final steps to your bonus calculations

It’s bonus time and you have prepared all your calculations as per the rules laid out. Before going to your CEO to show her the numbers, go through this checklist to ensure you have covered most angles and provide value to the discussion. Check the eligibility list one last time. Who are your new joiners…

The shelf life of compensation plans

One of my friends contacted me recently, complaining that the Sales Incentive Plan that his company introduced a little over 4 years ago, does not seem to “work” any longer.The Sales people are not motivated, results are down and employees are complaining about how their incentive is structured. He even says that it is whispered…