Bonus Plans
A good bonus plan is the most powerful tool a company has. An incredible motivator, a bonus program communicates goals in the most effective way possible—by putting a bounty on them. It says to people, “These targets are so important we’ll give you a reward if you hit them.”
When you do that, you get people’s attention, send a strong message, provide a focus, challenge, and a very good reason for working as hard and as smart as they can: they’re going to get paid for it.
If they do a better than decent job, if they can figure out ways to improve, then the company shares with them whatever additional money they generate by paying them bonuses.
The motivation is clear. The more money they generate: the bigger the bonus. There’s nothing like winning to make people try even harder, reach farther, do better the next time.
