Our experience is that there is usually a disconnect between management and employees over performance. Most of the time it is managements fault, because they fail to share their expectations with others – it’s like the coach never sharing the strategy or game plan with the players, but still expecting them to win.  While more money isn’t the answer to every performance problem, if an incentive plan is used wisely, it can result in a win/win for your company and your employees.

The first step is to be clear on what you want to have happen, and that your plan will result in higher and better performance for your company. Clear measureable expectations are the first step to a successful incentive plan.  Set goals that rise above current performance, but are reachable.  Goals that are unrealistic will have the opposite effect, they are a disincentive.

You must then share your measureable expectations with your employees so they understand what you want, how you want it, and how often. Be sure to spend time explaining and discussing what you want with your employees. Heads often nod in agreement, yet lack full understanding.

Finally, measure performance and provide timely feedback to your employees so they know the score. There is a reason why competitive games have scoreboards – it changes everything.  It provides incentive all by itself, as no one likes to lose. The satisfaction of reaching a goal and receiving the reward will be motivating to most employees.  Don’t shortcut the process – a simple and well-designed plan will result in a win for you, and for your employees.