At Compensation Works, we understand the importance of incentivizing employees effectively. We specialize in designing short-term and long-term incentive plans that align with our client’s strategic objectives and motivate their workforce to deliver their best performance.

Short-term Incentive Plans typically revolve around annual performance goals. We create plans that tie incentives directly to achieving specific, measurable targets, such as sales volume, project completion, customer satisfaction scores, or other key performance indicators relevant to the employee’s role. These plans often use cash bonuses but might also involve non-monetary rewards such as recognition or additional time off.

Long-term Incentive Plans are designed to motivate and retain key employees over a longer timeframe, usually three to five years. These plans align the employees’ interests with the company’s long-term success. They often involve forms of equity compensation, like stock options or restricted stock units, which give employees a stake in the company’s future growth and success. Alternatively, they might be based on long-term performance metrics like multi-year profit targets or strategic project completion.

In both plans, we aim to create a clear and compelling link between performance and reward. We carefully consider the company’s strategic goals, the nature of the employees’ roles, and market trends to design incentive plans that are fair, competitive, and effective in driving high performance.