Mastertek Insights

There is no doubt that incentives and commission-based reward plans continue to be a critical element of an effective sales strategy.  When badly designed or implemented plans are put in place the impact on the salesforce can be significant - for all the wrong reasons.

Great design is one thing, but implementing it is another challenge altogether. I've written plenty on the subject of designing good remuneration and reward propositions(click here for more), as that's what I spend a lot of time doing.  I also spend a lot of time working with clients to implement change and over the years we've seen all kinds of barriers put up by different stakeholders.  The solution is to address those barriers during the design phase, as I'll explain further.  I'd like to start though by offering some observations on the reasons why reward plan design may not always translate into practice.

The function and nature of executive and employee reward continues to be the subject of much debate.   Unless fortunate enough to have found our one true calling or to be financially independent, most of us do not have the liberty to  present for work without asking for a reasonable salary in return.  From an employer's perspective, offering a fair level of fixed remuneration makes good sense – in so far as one would hope that the individual feels obliged to turn up for work on a consistent basis if nothing else!

There is no doubt that the traditional performance review has, in many organisations, become a largely unsatisfactory process for all involved.  Does that mean the concept itself is flawed or is it more that the execution, like many other commonly adopted business processes, has been diluted over many years of application – where the benefits and principles of the original concept have been lost and replaced by custom and practice handed down and often diluted over the years?

The form and function of executive and employee reward continues to be the subject of much debate.   Unless fortunate enough to have found our true calling or to be financially independent, most of us do not have the liberty to  present for work without asking for a reasonable salary in return.  From an employers’ perspective, offering a fair level of fixed remuneration makes good sense – in so far as one would hope that the employee then feels obliged to turn up for work on a consistent basis if nothing else!...

A key aspect of our work at Mastertek revolves around the design, development and implementation of effective remuneration and reward strategies.  In local government this area of our work has typically focused on the management and maintenance of salary systems, including; job evaluation methodologies and their application, salary structures and approaches to salary progression and, less common in local government, the use of incentive plans and employee recognition programs.....

Developing a salary system for the first time can be a daunting prospect. Reviewing and replacing an existing system has often proved to be an even more challenging proposition for many of our clients.  Part of the problem, as with many remuneration and reward-related practices, may be over complication or the perception that it will somehow be a painful experience...