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.
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