Many companies in the region and indeed globally have some form of incentive or bonus scheme, but many are based either on years-of-service or seniority or company performance, with little or no recognition of individual performance. In an increasingly competitive environment, when you want to attract and retain the best individual employees and high-performers, these methods of paying for performance may be unsustainable in the long-term and other approaches to variable pay and bonuses and incentive schemes may be necessary.
The aim of this course is to show you how to develop practical bonus schemes, incentive schemes and variable pay policies that meet the needs of the business, while allowing you to attract, motivate and retain good quality employees. Most employers want to ensure that they can “attract, retain and motivate” the best employees and teams, and this course will cover the key areas in the overall compensation and benefits package that enable employers to adopt best-practices and help them compete more effectively in the war for talent whilst achieving optimal cost-effective performance for the employer.
Numerous forms of variable compensation, and incentives and benefit plans, provide employees with the opportunity to earn higher pay where performance can merit. You will explore the different types of variable pay and incentive plan options available including variable pay as a total remuneration strategy, and both short and long term incentive plans and options. You will also cover key trends in both the Asia and global compensation and benefits marketplace for employees, and learn how to use the overall remuneration package more effectively to manage employee performance and achieve better business results through a more effective approach to the compensation and benefits programme.
This course will provide you with information and guidance on how to develop practical incentive schemes to meet the needs of your business. You will have the opportunity of designing and implementing various incentive schemes, as well as sharing ideas and experience. You will work on typical incentive scheme problems and issues, including actual issues and problems that are identified by the delegates during the course.
Key Benefits of Attending
Who Should Attend?
This course is designed for everyone who requires an appreciation or an in-depth knowledge of annual bonus schemes and variable pay plans including bonuses and incentives. This includes anyone who needs to be involved in variable pay and bonus schemes, including all employees in HR at all levels of VPs/Directors/Managers/Specialists/Analysts/Generalists, and this course is designed for the all of the following participants:
- All managers and professionals and specialist who work in any area of HR.
- All specialists in HR who work in Compensation and Remuneration and Rewards.
- All specialists in HR who work in Performance Management and Performance Appraisals.
- All managers from any functional area that need to know about bonuses and incentives
There are no pre-requirements, and this course is suitable for participants who classify themselves at either “elementary” or “intermediate” or “advanced” levels.
Case Studies and Course Outline
You will work on the main approaches for annual bonus schemes and variable pay plans and incentives, and the course will include various practical case studies designed around various leading global and local companies, including the following:
- Building the internal case for introduction/revision of a variable pay programme
- Selecting the most appropriate variable pay or bonus programme
- Designing the main dimensions of a bonus scheme or company-wide bonus programme
- Designing the main dimensions of a sales incentive plan (SIP) for sales staff
Session 1a: Introduction
- The golden triangle of Reward Management (jobs, people and performance, and pay markets)
- The role of performance management and performance appraisals to develop employee ratings
- What motivates and retains an employee?
Session 1b: The Role of Variable Pay Schemes:
- Types of variable pay schemes and current best practice in variable pay management
- How incentive schemes can be used to help achieve business goals
- Current trends on variable pay and incentives
- The difference between bonus (past recognition) versus incentive (future motivation)
Session 1c: Performance Management and The Goal of Linking Pay to Performance:
- Establishing targets and measures
- Measuring and tracking performance (of the employee and the company)
- Reviewing and rating individual employee performance
- Next Generation Performance Management: The Death of Performance Appraisals
- Say Goodbye to KPIs and Say Hello to MSCs
Session 2a: Types of Incentive Schemes and Critical Issues For Incentive Schemes:
- What is recognition versus incentive?
- Why have variable pay?
- Improved shareholder returns and employee retention
- Short-term incentives and annual bonus plans and SIPs (sales incentive plans)
- Linking measurement to business strategy and linking payment to performance
- Importance of ‘build-up then pay-out’ process
- Variable pay as a component of total remuneration strategy
Session 2b: Bonus Scheme Designs and Alternatives For Company-Wide Plans (Excluding Sales):
- What motivates an employee?
- Importance of “build-up” (funding the plan) and “pay-out” (determining target plan payments)
- Gearing effects and bonus multipliers
- Individual plans, team plans, departmental plans
- Company-wide bonus schemes such as profit-sharing bonus
Session 2c: SIPs (Sales Incentive Plans) instead of Bonus Schemes (Only for Sales):
- What are SIPs (Sales Incentives Plans)
- When should an employee be in SIPs rather than Bonus?
- Designing SIPs (Sales Incentive Plans)
- The 10-step plan for designing successful SIPs (sales incentive plans)
- Understanding and Managing the Key Fulcrum Points for SIPs
Post Course Optional Reading: Process For Designing Short-Term Bonus Plans:
- The principal stages in designing an effective incentive scheme
- Selection of performance measures
- Defining plan payout criteria