Objective based incentive programs

Objective Based Incentive Programs

Ideally, the purpose of an incentive plan is to motivate employees to work towards achieving company objectives, both short and long-term, and incorporate those efforts in their day to day activities.

Unfortunately, incentive plans are all too often built around team based goals that are disconnected from the individual employee or are merely a distribution of profits with no correlation to individual performance.

An objective based incentive plan links individual employees at the management level directly to company goals and objectives. Individuals are rewarded based on their unique contribution to those objectives and, as a result, are motivated to channel increased focus and effort on those activities that drive overall company performance.


To improve company performance by motivating those in management roles to increase focus and effort on overall company goals and objectives.


  • Conduct a review of the company’s vision, goals and incentive plan history.
  • Confirm overall company objectives.
  • For each manager, assess which objectives they can realistically contribute to and how, within the context of their day to day responsibilities.
  • Set individual objectives and the corresponding incentive.
  • Consolidate objectives and determine the impact on the overall company objectives.
  • Once approved, establish a quarterly review process that will track progress, remove potential roadblocks, and address any new factors that could impact the attainment of objectives.
  • Assist in the completion of the year end reports, distribution of the incentive, and post review of the program.


An engaged and committed management group that remains focused throughout the year on performance enhancing initiatives that result in sustainable improvements to the organization.