From the course: Setting Team and Employee Goals Using SMART Methodology

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Link goals to incentives

Link goals to incentives

From the course: Setting Team and Employee Goals Using SMART Methodology

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Link goals to incentives

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- If you want your people to hit their goals, you should probably give them an incentive for doing so. Sometimes incentives are money. They can be salary or bonuses. They may have incentives that are stock or options. Other incentives can be awards, time off, or promotions. Something that's going to be meaningful and exciting to that associate. When you set the incentives, make a direct linkage between the goal and the reward. For example, if you have a commit goal and a stretch goal, put the bonus on a sliding scale between those two instead of creating an all-or-none scheme. Teams can get extremely frustrated when they hit 85% of their stretch goal and they get nothing for it. They should get 85% of the possible bonus. I've been in both of these situations. I was in one organization where we had a commit of $50 million of profit, and a stretch of $75 million of profit. At $50 million, our bonus was going to be zero.…

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