By Rob Marchalonis.

Recently, I’ve been helping business leaders design and implement smart incentive plans.  Here’s what I’ve learned:

  1. Believe it or not, many workgroups operate at just 60% productivity, or less.
  2. Employees have much more capacity, but minimal strategy to encourage extra output.
  3. 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