Hi Judy,
In my former job as a director Human Resources I have defined an incentive
program fro the workforce.it was integrated in a broadband pay structure
in order toachieve the possibility for rewarding with salary and with
incentives.I think you should first define your rules for rewarding with
pay and than linkyour rewarding with incentives with these pay rules.
I think it is important that pay should have a stable and a variable
component. You should be careful with this. A lot of companies applay a
ration of 55/45 to motivate the employees to be as much billable as
possible. I consider this a short term strategy because the employee will
focus on the billability of the next day and will no longer have time for
things like learning, employability, quality etc.
I divided the incentive ruling into three components:
- the individual incentive that was related to the flex component of the
individual pay
- a team or group incentive that was related to the performance of the
group/team
- a company wide incentive that was related to the results of the company
The last one was a nominal incentive because a percentual is unfair
because of the differences in pay. It is very important that incentives
are obtainable for each member of the workforce. You can apply differences
within the percentages, but if you exclude certain categories of employees
your system will fail in the long run. Therefore linking the system to
billability is not enough. You have to combine this with a sound
performance appraisal, that is leading for the whole remuneration. Because
of this also other elements of HRM are involved, like career development,
training etc. It is not possible to isolate a pay structure or an
incentive instrument from Human resource development. For internal
communication I have created models of this system. If you are interested
I can send you some examples of this model.
Kind regards
Gijs Houtzagers
Principal business consultant HRMIS and employee benefits systems
WARD CAMBELL
Steenovenweg 3
5708 HN Helmond
Netherlands
Tel 31 (0)492 523 000
Cellphone 31 (0)622 934 676
E-mail: g.houtzagers@wardcambell.com
>I am a grad student who is working on a project related to incentive
>programs for manufacturers. I am curious if anyone is aware of a
>particular incentive program that works exceptionaly well. The program
>could be profit sharing, pay for performance, or anything that has
>motivated employees. Of particular interest would be any program which
>involved employees at every level. Can anyone help?
[Host's Note: I adjusted the formatting a bit in this msg. ...Rick]
--"drs G. Houtzagers" <G.Houtzagers@inter.nl.net>
Learning-org -- Hosted by Rick Karash <rkarash@karash.com> Public Dialog on Learning Organizations -- <http://www.learning-org.com>