Vaishalee Parkhi
Hr Consultant & Trainer
Hr & Administration Specialist
Recruitment/talent Acquisition, Career Counselling
Hospital Administration
+1 Other

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Dear Seniors,
Please help!
How can we decide how bonus/incentive should be given to a particular employee when you cannot measure achievement in terms of revenue target.
My organization is into entertainment industry and is planning to start incentive/bonus plan for client servicing, creative & operations staff. How can we decide how much we should give as bonus. For Marketing, already one plan exists which they do not want to change.
I have developed a list of objectives that are important in these areas. Also, as we work on project basis, shall I consider the project value as well? Or, incentives should be some percentage of employees' salary or a fixed amount for all (irrespective of salary).
Please help me as this is very important and urgent.
Kind regards,

From India, Delhi
Incentives are nothing but variable pay based on the individuals performance. Why you can not measure the performance if you have set KPIs? pon
From India, Lucknow
Dear Pon,
Revenue generation is the work of Marketing department, those who are working for business development. Now once the project is grabbed, the whole staff (of ops, creative, client servicing) works on it but it is considered as the project of that BD personnel who got it from the client.
So, I want to know shall incentives be fixed on project basis or on monthly salary because they are supposed to work on every project that the company has got and thus revenue generation on their part cannot be measured, though we have KPI's.
Please give your views in broader terms.

From India, Delhi
In that case, you can consider on project basis and be given on yearly. Normally, Performance Linked Incentives are measured and given on Financial year (Apr to Mar). PLI varies and you should have some system to measure the individuals performance.

From India, Lucknow
Incentives on project value would be more appropriate. It will work as a good motivation to get more projects / big projects.
You can outline the general working methodology / achievement criteria in terms of GOALS for each employee category separately i.e. Operations, creative, client servicing etc. i.e. from start up of the project to its successful completion. Give weightage (say10%, 20% etc.) to each goal. At the end of financial year, you can measure performance of your employees for each goal and calculate incentive amount. Put a limit on rating (e.g. 90 out of 100 is highest marks or rating) which will take care of your project margin.
Hope this will help you.

From India, Pune
Identify the criteria upon which employee’s performance will be based first and determine what percentage of project income will be incentive budget. Thanks Tunde Babs
From Nigeria, Lagos
Hi there,
Surely incentives are based on performance measurement & since you are using Key Performance Indicator as a way to measure performance then you measure according to their deliverables. You give weight to the deliverable in percentage is linked to the total score. All Projects are measured by agreed deliverables.
However, you can make it more competitive and make it time bound. Should you want to have your evaluation efficient you can design your performance appraisal evaluation into quarter where you check how your employees are progressing with their projects and deliverables and give weight for each quarter.
This way you have early warning on projects which are not progressing or facing problems.

From Oman, Muscat
Hello Shruts,

A similar situation exists in Power Generation sector.

I am not sure of the private players, but NTPC has a model in practice since over 25 yrs.

The Total Incentive payable is usually divided proportionately between the various departments who contribute to the power generation. Operation & Maintenance staff getting the major share--they are akin to the BD/Marketing guys in your situation. I don't recollect exactly, but all the other depts get the rest of the share divided equally between them--right till the office peon who supports the whole effort in an indirect, though at a minor scale.

All who are eligible for the Incentives [Probationers & those who are on leave beyond a specific period are not] get the incentives based on their Salary scale/basic. Also, the model, if implemented, will have to be preceded by a very clear & transparent discussion between all the depts concerned, so that there are no heart-burning situations [the BD guys may feel a bit bad to loose a part of 'their' share, but they need to be convinced to look @ the bigger picture where they too stand to gain much more in the long-run].

Hope these inputs help you. It would be good if there's someone in this Forum who works there--he/she could give a more elaborate answer.



From India, Hyderabad
Thanks everyone for your valuable inputs. Keeping the situation & your inputs in mind, I designed the incentive slabs and my boss really liked that. Thanks everyone. Warm Regards
From India, Delhi
Hello Shruts, All one can say is: That’s CiteHR for you :-) If not confidential, why not share the model you implemented? Many could benefit in the process. Rgds, TS
From India, Hyderabad

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