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Connecting the incentive scheme to the evaluation procedure assures, among other things, that the evaluation will be taken seriously by both employees and managers with all the consequences attached to it, such as specific feedback to the employee concerning potential areas for improvement.
Gerstenfeld,., Rosen,., Why Engineers Transfer, Business Horizons, 1970,.The next section reviews the major stages in developing a wage incentive scheme; a definition of each stage is followed by a general discussion of implementation problems, ending with an implementation analysis in a project environment.They are: Gradiatedcreate multiple levels so employees always have higher levels to strive for.That employee continues the same performance into the next year, but the supervisor wants to single someone else out with a bonus and he doesnt award a bonus to last years star employee.The following are the steps in calculating the employee's incentive:.Managing Scope to deliver what is really required, means involving users in project design.Some examples of equations can be found in Globerson 10 and Fein.Other ways to bonus performance can include a weeks pay to reward customer satisfaction, quality workmanship, safety achievements, or overall company improvement.When the minimum annual net profit targets are hit, each management team member receives an equal share of the net profit incentive pool earned.Other bonus triggers for project performance can include an additional weeks pay if the project is completed on-time or under-budget.
If the economy or company performance does not warrant or allow for extra bonus gift compensation to be awarded, make sure you fully explain the situation to all of your employees in a company meeting.
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