The Alignment Group will work with your organization to develop a incentive system based on business strategy.
In order not to increase fixed compensation costs, we find that most incentive systems can be self-funding. Typically scorecards can incorporate metrics of cost reduction, productivity and/or increased sales. When designed correctly, improvements on one or more of these metrics can fund the incentive system.
Incentives combine with the scorecard to produce a powerful motivational tool. A well-designed incentive system will produce 25 - 50% gains in performance, or even more as can be seen in graph below. This graph is a composite of all the measures in this company's scorecard. The first three months of the graph are before the beginning of the incentive system.