Quote:
Originally Posted by Buddahaid
I'm in a quarterly incentive program and I like it, however, our performance gets measured on a monthly basis as we are a service provider, and the more effective we are providing the service, the better the incentive.
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I'm not really that concerned about incentives offered to workers or their performance reviews. The big problem is at the executive levels where often over-generous bonus are bestowed on a quarterly basis at a fixed amount/level and the end result is not long term strategies and planning, but, rather, simply get 'good enough' numbers to meet the bare minimum, particularly sine the amount of the bonuses is the same whether the goal is met or the goal is doubled. Platapus' idea of making the bonus pro rata in relation to the extent what is the actual gain(s) seems a better idea than just saying "Increase sales by 5% to get your bonus" because the tendency will be expend what effort is necessary to meet the 5% than go for, say, 10%, 15%, or 20% because the bonus amount is the same for 5% as it would be for 20%...
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