- Start out with clear objectives for what you want to achieve.
- Design a scheme that is aligned to your organisational values and goals
- Establish effective performance management processes and goal setting.
- Involve line managers and other key stakeholders in implementation.
- Ensure there is consistency between rating performance and applying rewards.
- Think in terms of a ‘best fit’ approach – suited to your organisational context – rather than a generic ‘best practice’ one.
- Make your scheme more complex than it needs to be.
- Assume that all staff will be equally motivated by the prospect of financial gain.
- Focus on short-term objectives to the detriment of long-term goals.
- Allow inconsistency to creep into performance assessment and pay decisions.
- Forget managers make or break performance pay. Ensure they are equipped for the job.
Sylvia Doyle, Reward First People Consulting