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Incentive Compensation System

It will benefit management and employees alike to implement a solid incentive compensation program. If an incentive compensation program is strong, it will be a powerful motivating factor for employees, prompting them to go the extra mile and think outside of the box to come up with new ways to be of benefit to the company. Incentive compensation systems don't have to be elaborate to be effective. Small bonuses offered at regular intervals are often highly effective. Further, many employees respond exceedingly well to non-monetary rewards, such as verbal and non-verbal praise and recognition, such as plaques and trophies. Finding just the right system for an individual company is a highly detailed process that analyzes a lot of different factors before arriving at the right sort of program. No two companies are alike, so no two incentive compensation programs can be exactly the same and still be effective.

Build a Better Incentive Compensation System

The days of the quarterly or annual bonus are long gone. Managers who hope to keep and attract the best employees and keep workers interested in their jobs have to design new ways to reward the best performers and give others something to aspire to. Today, many managers are hiring compensation consultants to help with this process.

Compensation consultants specialize in evaluating pay structures and existing incentive compensation systems and bonus programs, while measuring these things against current industry conditions and company goals. The end result is an incentive compensation system that works. Contact Fox Lawson & Associates, a division of Gallagher Benefit Services, Inc at for more information.

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