Using short-term incentives
When do you use short-term incentives instead of fixed base salary, benefits or long-term incentives? Hay Group can help you find the right ways to reward employees for achieving the required results.
From bonus schemes to variable pay plans, effective short-term incentives can enable you to:
- align reward costs with business results
- instill a culture focused on results, rather than just effort
- provide a competitive or differentiated total remuneration package for high achievement
- increase employee commitment/engagement.
But to reap these rewards, it’s essential that the right goals are incentivised and that organisations differentiate clearly between ‘short-term’ and ‘long-term’ rewards. Hay Group can help you put in the place the right incentives.
Why Hay Group
Hay Group’s experience working with leading organisations across the world equips us to offer sound advice on what incentives work best to meet specified performance goals – and to change behaviours as needed. We have developed incentive schemes for all different groups of employees, from sales and technical people to customer service staff to middle managers or executives. And in addition to understanding rewards, we also have expertise in employee motivation and in understanding employee attitudes.
For example, our knowledge enables us to differentiate clearly between short term bonus objectives – such as meeting a specific team target – and longer-term business or organisational goals which may be better rewarded through long term incentives – or even through changes to base pay or benefits.
Our focus is on designing and implementing programmes that enable you to reward employees for achieving the required results. We take into account the enormous variations in performance demands, which vary greatly between jobs and business sectors, as well as the different cultures and expectations of each group – and your overall business culture and objectives. We have assessed the number of measures or targets that can best be used and how best to construct motivational and cost effective schemes.
With Hay Group, you get unequaled experience, expertise, market knowledge, and insight, as well as the world’s most comprehensive databases, global network, total pay perspective, and, most of all, a clear understanding of people.
Hay Group’s approach to short-term incentives
To get results, Hay Group works closely with key decision makers and financial professionals across your business to gain a deep understanding of your business strategy, business model, key performance indicators (KPIs), and culture. Then we help clients develop clear priorities that set out their aims in both the short and long term for these each group of employees.
Based on these priorities, we then help clients select the most appropriate form of incentive for their needs, from sales incentives through ‘sharing in success’ schemes (such as profit sharing). We also:
- model outcomes and costs of alternative plan designs
- develop detailed plan designs and
- help to implement and communicate the plan to employees.
Hay Group in action
Hay Group has helped develop effective short-term incentives for Shire Pharmaceuticals.
Find out more
If you would like to discuss the benefits of short-term incentives in more detail, please contact us.