By Rob Marchalonis.
Recently, I’ve been helping business leaders design and implement smart incentive plans. Here’s what I’ve learned:
- Believe it or not, many workgroups operate at just 60% productivity, or less.
- Employees have much more capacity, but minimal strategy to encourage extra output.
- There is simply no reward to work harder or smarter, and employees wish there was.
Incentive compensation plans offer a methodical way to reward employees for better results. I know incentives work because my clients are enjoying these outcomes:
- One service team saw a 20% productivity lift.
- Within 3 months after launching incentives.
- A senior leadership group is enjoying five-figure incentive payouts.
- Justified, because business results are up six-figures.
- Mechanical shop reduced payroll by $30k per month, yet increased their output.
- Our assessment uncovered inefficiencies and waste.
- When an admin team lost two employees, the others gladly absorbed the work.
- New incentives rewarded their effort.
- Two clients were able to halt hiring plans after incentives increased output.
Every wise leader knows that productivity gains are good for business too:
- Three of my clients have doubled their net profit.
- Productivity savings often drop to the bottom line.
If you know an organization that could benefit from smart incentives, please connect them with me.
Rob Marchalonis (Rob@LSP123.com) helps organizations develop variable compensation plans to prosper and grow. Read Rob’s book, IncentShare: Motivate, Recruit, and Get Results with Incentives, available at Amazon. www.IncentShare.com