Other considerations to consider when using incentives include:
- Results are better when employees have a clear line of sight into the connection between actual rewards and goals/objectives.
- Well-designed incentives reinforce pay philosophy to help build employee engagement, trust, loyalty and culture.
- Incentive plans provide the company an alternative to delivering employee compensation in a fixed amount.
- Linking goals to short- and long-term incentive plans helps motivate employees to act appropriately and in the best interest of the company.