When Designing an Incentive Plan: What to Consider
Factors to Consider When Designing an Incentive Plan
When designing an incentive plan, it is important to consider the following EXCEPT:
- Which behaviors to reward.
- What type of incentives is appropriate for the purpose.
- What to accomplish by providing incentives.
- How to avoid giving incentives to certain individuals.
Final answer:
When designing an incentive plan, it is important to consider several factors, but the one factor that should be excluded is how to avoid giving incentives to certain individuals.
Explanation:
When designing an incentive plan, it is important to consider several factors. However, the one factor that should be excluded from consideration is how to avoid giving incentives to certain individuals.
By considering which behaviors to reward, what type of incentives are appropriate, and what the desired outcomes are, a well-designed incentive plan can effectively motivate individuals and drive desired behaviors.
For example, a company may design an incentive plan that rewards salespeople based on their performance, such as meeting or exceeding sales targets. The incentives could be monetary bonuses or non-monetary rewards like recognition or career advancement opportunities.
When designing an incentive plan, what factors should be considered? When designing an incentive plan, several factors should be considered, such as which behaviors to reward, what type of incentives are appropriate for the purpose, and what to accomplish by providing incentives. It is important to focus on motivating individuals and driving desired behaviors through a well-designed incentive plan.