The do's and don'ts of incentive schemes

At DNT Chartered Accountants we can advise businesses in the Belfast area on many aspects of business life. Here are some pointers for employee incentives...

Incentive schemes can have great benefits both for your business and your staff. Rewarding good performance motivates your star employees, and encourages others to emulate their achievements. However, there are pitfalls, so tread carefully when devising an incentive scheme. Here are some do's and don'ts:

  • DO reward results
  • DON'T reward activities
  • DO set targets that encourage employees to maximise profit opportunities
  • DON'T set targets that do not fit in with your overall objectives
  • DO reward results in proportion to the extra profit they generate
  • DON'T set upper limits to the amount that can be earned in incentive payments
  • DO use incentives to take overall pay to the high end of the market
  • DON'T tamper with basic pay levels - keep them at competitive market rates
  • DO use equitable criteria so that everyone feels equally motivated
  • DON'T forget to communicate the successes and failures to all concerned on a regular basis
  • DO fund incentive schemes from the additional revenues they generate
  • DON'T make promises you can't afford to keep!

Call us if you would like help in developing strategies for motivating employees and reducing staff turnover.

If you are in the Belfast area and are looking for help and advice from a team of professional accountants and business advisers, contact DNT Chartered Accountants.


Logon | Accessibility | Disclaimer | Help | Site map |

© 2018 DNT Chartered Accountants. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Place of registration: Ormeau House, 91-97 Ormeau Road, Belfast, BT7 1SH. Tel: 028 90 32 00 39, Fax: 028 90 24 30 67, Email: info@dntca.com - NI056589

We also have offices at: 11a Newry Street, Rathfriland, BT34 5PY, Tel: 028 40 63 06 96 | 33b Church Street, Antrim, BT41 4BE, Tel: 028 94 46 05 40, Fax: 028 94 46 60 66 | Bachelors Walk, Lisburn, County Antrim, BT28 1XJ, Tel: 028 92 675 837, Fax: 028 94 466 066