Innecto Group consulting argues that whilst the Banks bonus schemes played a part in creating the present financial woes it could well be that bonus schemes can provide part of the solution to get businesses back on track.

Whilst the banks are being criticised for bringing about much of their own (and now our) financial problems because of vastly generous bonus schemes rewarding reckless lending it can be argued that in relation to businesses in general an effective bonus scheme can stimulate productivity, innovation and ultimately profits and increased individual and company wealth. This benefits more than just employee and employer. Effective and successful businesses bring about social as well as economic benefits to a wide range of direct and indirect stakeholders.

The bonus schemesof an organisation have to be reviewed during the present difficult times. The bonus scheme can support the organisation during times of growth, but it can demotivate  employees in time of the recession if it fails to reflect changing and realistic business objectives. A businesses HR department has to evaluate its bonus scheme performance and its impact on employee motivation. It can propose additional changes to the bonus scheme to provide the employees with some kind of stability and consistent motivation.

Deborah Rees, Managing Consultant at Innecto Group, a specialist firm dealing with organisational reward strategy says: "Bonus schemes are no longer the preserve of senior management, variable pay structures are fast becoming a way to motivate employees throughout an organisation.

Many companies however are not realising the return on investment that should result from bonus schemes as the bonus schemes they design are not linked directly to organisational goals and employee performance. This presents companies with a unique opportunity to design a bonus scheme that reflects a broader set of business objectives as well as performance."

As experts in bonus scheme design, Innecto consultants create reward strategies that aim to deliver an efficient return on investment.For more information visit >>>>