Hi,
I hope all is well. I am working with a job placement company that deals with various sectors. Currently, we are performing very well, and I am looking to boost the interest and motivation of my employees by implementing an incentive scheme.
Can you please guide me on how to decide on the incentive scheme? Should it be based on the candidate, in terms of rupees, or specific to each sector? Which option would be more effective?
I am seeking help from this group to determine the incentive criteria as I believe this platform is filled with renowned, experienced, and successful members.
Thanks in advance.
Regards,
MANOJ
You can reach me via email at mbhatt25@yahoo.co.in.
From India, Surat
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1I hope all is well. I am working with a job placement company that deals with various sectors. Currently, we are performing very well, and I am looking to boost the interest and motivation of my employees by implementing an incentive scheme.
Can you please guide me on how to decide on the incentive scheme? Should it be based on the candidate, in terms of rupees, or specific to each sector? Which option would be more effective?
I am seeking help from this group to determine the incentive criteria as I believe this platform is filled with renowned, experienced, and successful members.
Thanks in advance.
Regards,
MANOJ
You can reach me via email at mbhatt25@yahoo.co.in.
From India, Surat
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Dear Manoj,
Incentive payments to uplift the motivation of employees should come after an in-depth study of the job process. It may be that in a job cycle, employees become demotivated at a particular point. To improve performance, some incentive schemes need to be derived. Moreover, any incentive scheme once designed cannot remain forever; it should be periodically assessed.
For further tips, you can call me at 09830154057.
SUDIPTA
From India, Calcutta
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Incentive payments to uplift the motivation of employees should come after an in-depth study of the job process. It may be that in a job cycle, employees become demotivated at a particular point. To improve performance, some incentive schemes need to be derived. Moreover, any incentive scheme once designed cannot remain forever; it should be periodically assessed.
For further tips, you can call me at 09830154057.
SUDIPTA
From India, Calcutta
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Hi,
In my opinion, you should plan an incentive scheme. A rupees-wise scheme will work better. Please find the incentive structure below:
Target % achieved Incentive %
50% 2%
60% 3%
70% 4%
80% 5%
90% 6%
100% 7%
For example, an employee of yours has a salary of Rs 10,000. You had decided the target as Rs 100,000. If he/she achieves 50% of the target, then the incentive should be 2%, i.e., 2% of Rs 50,000, and so on.
Thanks,
Rashmi
From India, Delhi
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In my opinion, you should plan an incentive scheme. A rupees-wise scheme will work better. Please find the incentive structure below:
Target % achieved Incentive %
50% 2%
60% 3%
70% 4%
80% 5%
90% 6%
100% 7%
For example, an employee of yours has a salary of Rs 10,000. You had decided the target as Rs 100,000. If he/she achieves 50% of the target, then the incentive should be 2%, i.e., 2% of Rs 50,000, and so on.
Thanks,
Rashmi
From India, Delhi
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You may plan accordingly:
What is more important for your company will be: Closing the position ASAP. So, you may use criteria for a) Time taken to source profiles and convert them into interested candidates, b) Follow-up with the Client, c) Setting up interviews, and d) Time taken to convert the candidate to a hire, and finally e) The hire. You may fix a certain percentage of the incentive when the hire takes place. Also, you may include a small percentage for lower-level and a higher percentage for senior/management level hires.
You can also request your team to seek referrals from candidates or anyone they talk to, and the more number of referrals - for example - for every 2 candidates they talk to, they must at least get one referral.
Also, monitor the email language - encourage employees to improve on proper email communication. You may even fix an incentive for people who have not goofed in email communication.
Thanks
From India, Madras
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What is more important for your company will be: Closing the position ASAP. So, you may use criteria for a) Time taken to source profiles and convert them into interested candidates, b) Follow-up with the Client, c) Setting up interviews, and d) Time taken to convert the candidate to a hire, and finally e) The hire. You may fix a certain percentage of the incentive when the hire takes place. Also, you may include a small percentage for lower-level and a higher percentage for senior/management level hires.
You can also request your team to seek referrals from candidates or anyone they talk to, and the more number of referrals - for example - for every 2 candidates they talk to, they must at least get one referral.
Also, monitor the email language - encourage employees to improve on proper email communication. You may even fix an incentive for people who have not goofed in email communication.
Thanks
From India, Madras
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Hi,
At the outset, it's encouraging to know that you are doing well. Keep it up. Your first priority should be to consider the Cost to Company (CTC) of the employee. There is a minimum target that every employee must achieve, which accounts for the CTC. No incentives are paid for meeting this minimum target, as the employee is already receiving a fixed salary. Incentives are planned based on achieving targets above this minimum. Additionally, there is a component called REWS cost, which stands for Real Estate Work Space. Every employee has a cost associated with their workstation, which is considered when determining the employee's CTC.
In hardware sales, one method we utilize is setting a contribution target for employees. This target focuses on the profit contribution to the company rather than the turnover. For example, a turnover of Rs. 10L may result in a profit of Rs. 2L. This Rs. 2L becomes the contribution target. Consider setting a contribution target suitable for a placement firm like yours and structure incentives accordingly, whether in terms of a percentage, a month's salary, or two months' salary. Additionally, take into account booking and billing targets. Incentives should be paid upon achieving the billing target, not the booking target. Therefore, incentives can be paid quarterly to align with higher billing chances compared to monthly payouts. You can adjust and align these strategies according to your industry.
I hope this information proves helpful to you. I will provide further details if needed.
Warm Regards,
Girimaji
From India, Bangalore
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At the outset, it's encouraging to know that you are doing well. Keep it up. Your first priority should be to consider the Cost to Company (CTC) of the employee. There is a minimum target that every employee must achieve, which accounts for the CTC. No incentives are paid for meeting this minimum target, as the employee is already receiving a fixed salary. Incentives are planned based on achieving targets above this minimum. Additionally, there is a component called REWS cost, which stands for Real Estate Work Space. Every employee has a cost associated with their workstation, which is considered when determining the employee's CTC.
In hardware sales, one method we utilize is setting a contribution target for employees. This target focuses on the profit contribution to the company rather than the turnover. For example, a turnover of Rs. 10L may result in a profit of Rs. 2L. This Rs. 2L becomes the contribution target. Consider setting a contribution target suitable for a placement firm like yours and structure incentives accordingly, whether in terms of a percentage, a month's salary, or two months' salary. Additionally, take into account booking and billing targets. Incentives should be paid upon achieving the billing target, not the booking target. Therefore, incentives can be paid quarterly to align with higher billing chances compared to monthly payouts. You can adjust and align these strategies according to your industry.
I hope this information proves helpful to you. I will provide further details if needed.
Warm Regards,
Girimaji
From India, Bangalore
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Hi Manoj,
Incentive is an external motivational factor to boost performance levels and interest in a job. Incentives in the form of money are key factors to enhance performance, confidence, and a sense of achievement among employees.
In my view, we should not differentiate based on the domain, sector, or job position offered to a candidate as it may create unhealthy competition among recruiters. I suggest basing it on a percentage of the Cost to Company (CTC) offered to the placed candidate by the concerned recruiter. This policy or criteria can be as specified by Rashmi earlier.
For candidates placed with a CTC of 5 to 10 LPA, the company would be charged an average of 8.66%, and an incentive policy could be structured as follows:
- For CTC 1 to 5 LPA - 2% of the consultancy's earnings to the recruiter.
- For CTC 5 to 10 LPA - 3% of the consultancy's earnings to the recruiter.
- For example, if a candidate with a 5 LPA CTC is placed, with an 8% commission from the company, the consultancy can earn 40,000 INR, and the recruiter could be paid 3% of this, i.e., 1200 INR.
- For CTC 10 to 15 LPA - 4% of the consultancy's earnings to the recruiter.
Before planning, ensure that it is challenging to place candidates for consultancies these days, and the success credit goes to the recruiter. Therefore, the incentive policy should align with real motivation criteria, particularly in terms of financial rewards.
Regards,
Brijesh
From India, Pune
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Incentive is an external motivational factor to boost performance levels and interest in a job. Incentives in the form of money are key factors to enhance performance, confidence, and a sense of achievement among employees.
In my view, we should not differentiate based on the domain, sector, or job position offered to a candidate as it may create unhealthy competition among recruiters. I suggest basing it on a percentage of the Cost to Company (CTC) offered to the placed candidate by the concerned recruiter. This policy or criteria can be as specified by Rashmi earlier.
For candidates placed with a CTC of 5 to 10 LPA, the company would be charged an average of 8.66%, and an incentive policy could be structured as follows:
- For CTC 1 to 5 LPA - 2% of the consultancy's earnings to the recruiter.
- For CTC 5 to 10 LPA - 3% of the consultancy's earnings to the recruiter.
- For example, if a candidate with a 5 LPA CTC is placed, with an 8% commission from the company, the consultancy can earn 40,000 INR, and the recruiter could be paid 3% of this, i.e., 1200 INR.
- For CTC 10 to 15 LPA - 4% of the consultancy's earnings to the recruiter.
Before planning, ensure that it is challenging to place candidates for consultancies these days, and the success credit goes to the recruiter. Therefore, the incentive policy should align with real motivation criteria, particularly in terms of financial rewards.
Regards,
Brijesh
From India, Pune
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Hi,
Thanks a lot to Sudipta, Rashmi, Asha Mathew, Reema, Girima Ji, and Brijesh for your valuable suggestions. It gives me an idea to decide the incentive criteria for employees. I will try to keep in mind all your suggestions.
Regards, MANOJ BHATT 9879590072
From India, Surat
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Thanks a lot to Sudipta, Rashmi, Asha Mathew, Reema, Girima Ji, and Brijesh for your valuable suggestions. It gives me an idea to decide the incentive criteria for employees. I will try to keep in mind all your suggestions.
Regards, MANOJ BHATT 9879590072
From India, Surat
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Employee incentives are a great way of keeping employees motivated. Rewards and incentives are a good strategy to keep employees motivated and focused on the goal. However, the incentive strategy needs to be well thought out and well planned.
Here is a link to an article focusing on some key areas that companies must consider before having a formal incentive plan: [Pros and Cons of employee incentives](http://quikchex.in/dangling-the-carrot-pros-and-cons-of-employee-incentives/)
From India, Mumbai
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Here is a link to an article focusing on some key areas that companies must consider before having a formal incentive plan: [Pros and Cons of employee incentives](http://quikchex.in/dangling-the-carrot-pros-and-cons-of-employee-incentives/)
From India, Mumbai
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