CLUE: It’s Not (Only) About the Metrics
Studies indicate that a mere 10% of business leaders are happy with the annual incentive plan they provide their employees. That, of course, means 90% are unhappy.
Think about it. The vast majority of businesses in this country offer some kind of bonus plan and nearly all of them are dissatisfied with the results they are getting. Why? Because their plan seldom produces an outcome that merits the incentive rewards they are paying.
The question is, how does this happen? How is it possible that so many enterprise leaders can design a bonus plan that doesn’t work?
It’s quite simple, actually. It happens because they build their plans on the wrong premise. The result is they end up overpaying for underperformance. No wonder they’re frustrated!
So, if current plans are being built on wrong premise, what is the right one—and why are so few aware of it?
That is the question we will answer in this broadcast.
In short, if you are among the 90 percent of business leaders who are unhappy with their bonus plans, you should attend this event. Here are just a few of the reasons why.
In this broadcast, you will learn:
- The reason most bonus plans fail.
- What it means to build a bonus plan on the right “premise.”
- How to develop a clear compensation philosophy statement and what it should include.
- Why you must define value creation before you design your bonus plan.
- Why smart companies are transitioning from paying incentives to sharing value.
- Why new metrics are not the solution to your bonus plan problems.
- How to balance rewards for both short and long-term performance.
- The key measure upon which earnings under any incentive plan should be based.
- How to build an incentive plan that pays for itself—and why self-financing is the standard in the “new economy.”
VisionLink has been designing value-sharing plans for over 25 years. We have advised hundreds of business leaders on how to build rewards strategies that support a high-performance culture. We have learned what works in good economies and bad. In this broadcast, we will share what we’ve learned with you.