Bonus and incentive programs can effectively incent employee results and behaviour. However, if not properly developed and implemented, they can, in fact, present a barrier to business success for your startup and frustrate employees.
There are many different types of bonus and incentive programs you can create for your employees. The most commonly used programs include:
When creating an incentive program at your startup, keep in mind that every organization is different and that recycling a program from your last organization could be a big mistake. Follow the steps below to get on the right track. If you have any uncertainties, invest in a consultation with a Human Resources or Compensation Consultant/Advisor.
Creating a solid incentive or bonus program requires collaboration between your management, finance and HR staff:
When formulating the program, consider the following:
Once you have sorted through the considerations above, it is time to implement your incentive program. This means you are ready to: