If you’re looking for ways to keep your salary costs under control AND motivate your managers, you really should consider shifting dollars to variable pay. This limits your expenditures to only those employees who generate meaningful outcomes for your business and enables you to clarify for your managers exactly what you want them to accomplish and how much they will earn. It doesn't get more motivating than that!
Check out this recent blog entry, Salary vs. Incentives -- Two Very Different Tools, to learn more about when to use base salaries and when to use incentives to motivate your managers.
Based on results from a recent customer survey, here are the top 10 reasons companies use Incentive Plan Builder, the online incentive plan design tool for managers:
- “Incentive Plan Builder helps to focus my employees on the individual, team, and company results they can drive.
- “There’s no better way to get buy-in from employees in areas that make the biggest impact on our business.”
- “Incentive Plan Builder provides the discipline to motivate us to go through this important process.”
- “It’s a great tool with sound logic that ensures standard incentive plans for everyone."
- “Incentive plans make employees feel like important members of the organization.”
- “Going through the incentive design process helps us think about what it means to be a growing organization and what it takes to do more and do better.”
- “Incentive plans allow us to use all of our organization’s creativity to reach and exceed our goals.”
- “Using Incentive Plan Builder helps me be smarter about setting goals and keeping the big picture in mind.”
- “Incentive Plan Builder provides a central and organized place to house all incentive data.”
- “Incentive Plan Builder is a valuable and effective management tool that is universally applicable to all companies."
There's no question that custom-designed incentive plans motivate employees. The only question is, are you ready and willing to invest the effort to implement this important process? The answer should be "yes" if you're committed to making every compensation dollar work for your organization and driven to maximize business results.