Incentive Compensation Planning

The senior directors of Total Compensation Solutions (TCS) are experts in bonus and incentive compensation. TCS will help you determine whether your bonus and/or incentive plans are competitive and appropriate. TCS can review and design your incentive plans which could include any of the following:

  • Annual Bonus Plans
  • Short-term Incentive Plans
  • Long-term Incentive Plans
  • Equity Incentive Plans

Call TCS about our Bonus and/or Incentive Compensation services at 914-730-7300 or email Tom Bailey.

More on Bonus and Incentive Compensation Planning

When effectively applied, incentive planning provides a strong link between organization goals and strategies and compensation. It can be an effective tool for motivating employees to increase both individual and organizational performance and recent market trends reveal that incentive planning can be effective in a not-for-profit environment as well as a for-profit environment.

The process for establishing an incentive compensation plan is as follows:

  • Develop organization business strategy
  • Link business strategy to overall goals and objectives
  • Identify prospective plan participants
  • Establish individual goals and objectives
  • Evaluate market practices and determine target awards
  • Assign performance objectives to award levels
  • Communicate plan elements to staff.

Over the past decade, incentive planning and the concept of variable pay have gained widespread attention. Employers recognize that this a method of motivating employees to perform at higher levels. Employees recognize that they can affect the value of their own total cash compensation package by accomplishing the performance objectives set forth in a formal incentive plan.

Incentive compensation planning is a formal method of rewarding staff for achieving specific levels of performance "above and beyond" their normal duties and responsibilities. Each incentive plan is unique to the organization, whether profit driven or success driven in a not-for-profit environment. Each incentive plan is individually tailored to the staff and provides an excellent compensation solution for organizational performance.

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