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Now is the time to create, revise, or review your company's incentive plans for next year.  Effective incentive plans reinforce positive work behaviors.  Read on for tips . . .


                                                    - Ann Clifford, President  
Dos & Don'ts 
 

Must all employees be eligible for profit-sharing bonus plans? 


 
                       (Answer provided at the end of the newsletter.)

 

Company Incentive Plan Guidelines
  

Reward employees for their accomplishments by bonding incentives to sales, production, or net profit results.  The rewards can take the form of bonuses, higher hourly pay rates, perks, or paid days off.  Consider the following guidelines for effective plans.

  • Integrate: Tie individual goals of employees with company performance objectives.
  • Performance:  Relate rewards to a measurable performance beyond the norm.
  • Significant:  The potential reward must be perceived as a significant addition to income.
  • Frequency:  Higher frequency is best and at least quarterly.
  • Trigger:  For net profit bonuses, set profitability level to trigger incentives and pay only on excess.

If incentives plans are designed properly, employees feel more attached to the company's success and may work harder to help achieve it.

5 Keys to Sales Incentive Plans

Rewards and recognition are at the heart of any successful sales incentive plan.  Five key ways to make the incentives meaningful and rewarding to your salespeople are:

  • Be Strategic: Structure to motivate salespeople with the most potential. 
     
  • Customize:  People are motivated in different ways. Individualize by asking your salespeople what is meaningful to them.
     
  • Keep it Simple:  The best plans are attainable, metrics-focused and very clear.
     
  • Make it Competitive:  Broadcast individual progress to instill a sense of urgency and friendly rivalry. Competition drives real salespeople.
     
  • Reward Quickly:  Part of the excitement of winning is receiving rewards quickly and publicly.

Salespeople are like movie stars. They love the limelight. Recognition by peers is the quintessential motivator.  Public acknowledgement by the Sales VP or President of the company is unforgettable and goes a long way. 

Safari Interview Tip 
 

Ask candidates what form of incentive plans worked best for them in past jobs.  Be sure to ask why it worked for them and how it affected their performance.  

Answer to Today's Dos & Don'ts
 

Must all employees be eligible for profit-sharing bonus plans?

 

Unlike profit-sharing retirement plans, you may limit the eligibility of incentive plans to select individuals or groups.  Many companies use profit-sharing bonus plans to reward key employees or sales teams.  Yet, company wide profit-sharing bonus plans are ideal to get everyone working towards the same goals.  Consider varying the bonus amount based on responsibility, loyalty (years of service), and performance.


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Safari Guide
 Do Your Incentive Plans 
Need Rescuing?
 

Safari Solutions
 
Blog Discussion
Safari Success Story
"Ann understands the importance of finding sales representatives that will sell."


Paul Lushin, President

Lushin & Associates

  

Safari Quiz

What percentage of businesses intend to give holiday bonuses to their employees?

 

  1. 15%
  2. 24%
  3. 49%
  4. 67%



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About Us
 
Safari Solutions' recruitment process outsourcing services help companies hire better. Acting as a corporate HR partner, we help companies make educated hiring decisions by sourcing, screening, and evaluating candidates with a high level of due diligence. Hundreds of business owners have improved hiring results using Safari Solutions' Tiger Eye Hiring™ process.