Hello Experts, I am an HR Assistant Manager working for a corporation with 150 employees, and our management would like to revisit the incentive structure. As a current practice, we have defined incentive percentages, namely 12.5%, 17.5%, and 30% on gross salary based on performance. We also have a performance calculator based on their KPAs and have designed performance percentage slabs to pay the incentive percentage.
Linking Incentives to Revenue Targets
However, now management would like to link performance incentives to the revenue target generated for the fiscal year. For example, if "X" is the revenue achieved, then "Y" would be the total incentive payout for all the employees.
Hence, I would like to know how we can calculate the total incentive payout among all the employees, based on both their individual performance and the revenue achieved. I would appreciate your expert advice.
Regards,
From India, Mumbai
Acknowledge(0)
Amend(0)
Linking Incentives to Revenue Targets
However, now management would like to link performance incentives to the revenue target generated for the fiscal year. For example, if "X" is the revenue achieved, then "Y" would be the total incentive payout for all the employees.
Hence, I would like to know how we can calculate the total incentive payout among all the employees, based on both their individual performance and the revenue achieved. I would appreciate your expert advice.
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you for your valuable response and expert advice. I will definitely convey this advice to the management and seek their views on it. If they still wish to proceed with the proposed arrangement, could you assist me in understanding the implementation of performance management?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
12 Vangonotes HRM - Pay for Performance and Financial Incentives.zip
Performance Appraisal Tasks & Target for Al Maskari.doc
Performance Review Form - KDCL for year 2010.xls