How Can I Create an Effective Incentive Policy for My Company as Head of HR?

I am working as Head of HR/Admin and I want to develop my company's Incentive Policy. How should I go about writing it?

Thanks,
Nkem.

Please clarify the following:

Business Type and Incentive Structure

What is the business that you run? Do you want to give incentives based on individual performance or through profit sharing for a group? What kind of amount are you talking about? And what would be the eligible employee strength?

Regards

One way to do it is to allot points to different individuals in a team and fix an incentive for the team. Say there are 5 employees and each is allocated points as mentioned below, and the incentive is 1000.

Point Allocation and Incentive Calculation

A - 20
B - 10
C - 5
D - 30
E - 40

TOTAL POINTS = 20 + 10 + 5 + 30 + 40 = 105. THE INCENTIVES WILL BE ONE INCENTIVE POINT = 1000 / 105 = 9.52. HENCE:
A - 20 * 9.52 = 190
B - 10 * 9.52 = 95
C - 5 * 9.52 = 47
D - 30 * 9.52 = 285
E - 40 * 9.52 = 380

THE TOTAL COMES TO 997 AFTER ROUNDING. THIS CAN BE EASILY PROGRAMMED IN EXCEL. HOPE THIS WILL HELP.