Hello,
I have been referred here by a friend of mine, and he speaks highly of this forum. He suggested that you all are the best people who can help me with my query. I am hoping that I will gain some valuable learning from your experience.
Our company is thinking of implementing a good incentive plan for all employees at all levels. I am trying to do some research and understand this better before we start this project.
We are a manufacturing company and we do have an incentive plan for the sales team. However, we want to extend this plan to the entire organization, from workers at the floor level to the CEO, across all departments such as finance, quality, HR, strategy, marketing, production, IT, shared services, etc. Although we have a bonus system, it is not entirely based on performance. Therefore, we aim to quantify the incentive plan to be fair to all employees and linked to their performance.
How should we create this incentive plan? How should we start, and what are the things that we should consider?
I also have some basic questions, like how often we should review performance under the incentive plan—every month, three months, six months, or yearly. What parameters should we use to measure performance for different levels in various departments, as all cannot be measured using the same parameters, etc.?
Can someone please share some sample incentive plans related to a manufacturing company?
I need guidance and support from all of you.
Thanks,
Vipul
From Saudi Arabia, Riyadh
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I have been referred here by a friend of mine, and he speaks highly of this forum. He suggested that you all are the best people who can help me with my query. I am hoping that I will gain some valuable learning from your experience.
Our company is thinking of implementing a good incentive plan for all employees at all levels. I am trying to do some research and understand this better before we start this project.
We are a manufacturing company and we do have an incentive plan for the sales team. However, we want to extend this plan to the entire organization, from workers at the floor level to the CEO, across all departments such as finance, quality, HR, strategy, marketing, production, IT, shared services, etc. Although we have a bonus system, it is not entirely based on performance. Therefore, we aim to quantify the incentive plan to be fair to all employees and linked to their performance.
How should we create this incentive plan? How should we start, and what are the things that we should consider?
I also have some basic questions, like how often we should review performance under the incentive plan—every month, three months, six months, or yearly. What parameters should we use to measure performance for different levels in various departments, as all cannot be measured using the same parameters, etc.?
Can someone please share some sample incentive plans related to a manufacturing company?
I need guidance and support from all of you.
Thanks,
Vipul
From Saudi Arabia, Riyadh
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Dear Vipul,
Before designing the incentive plan, kindly consider the following things:
1) Which type of incentive plan (Monetary/Non-Monetary)
2) On what grounds are you declaring an incentive?
3) Why do you need to have an incentive program?
4) How much could your company spend on this incentive?
5) Do you have any specific metrics to measure performance?
Apart from all, for your reference, I have provided you with three links where you could get more information on incentives. Please refer to them as well:
- [How to Incentivize Manufacturing Employees | Chron.com](http://smallbusiness.chron.com/incentivize-manufacturing-employees-25496.html)
- [What are the Different Types of Incentive Plans? | Wisegeek.org](http://www.wisegeek.org/what-are-the-different-types-of-incentive-plans.html)
- [Worldatwork.org - Incentive Information](http://www.worldatwork.org/waw/adimLink?id=21776)
Thank you.
From India, Tiruchchirappalli
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59Before designing the incentive plan, kindly consider the following things:
1) Which type of incentive plan (Monetary/Non-Monetary)
2) On what grounds are you declaring an incentive?
3) Why do you need to have an incentive program?
4) How much could your company spend on this incentive?
5) Do you have any specific metrics to measure performance?
Apart from all, for your reference, I have provided you with three links where you could get more information on incentives. Please refer to them as well:
- [How to Incentivize Manufacturing Employees | Chron.com](http://smallbusiness.chron.com/incentivize-manufacturing-employees-25496.html)
- [What are the Different Types of Incentive Plans? | Wisegeek.org](http://www.wisegeek.org/what-are-the-different-types-of-incentive-plans.html)
- [Worldatwork.org - Incentive Information](http://www.worldatwork.org/waw/adimLink?id=21776)
Thank you.
From India, Tiruchchirappalli
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