What is the best system... ?
Framing the question like this doesn't really help since variable pay is a process for which no one winning formula exists. A system’s effectiveness has to be evaluated within each company's specific context, which means there isn't a ‘best' system but rather a 'best fit' system: a system most appropriate for the beneficiary population, type and scope of commercial or business challenges, company culture and type of activity.
Primeum will guide its clients every step of the way in dealing with these essential questions:

  • Are the potential rewards offered likely to motivate most scheme participants?
  • Is the choice of performance variables and indicators statistically sound?
  • Is the bonus payout consistent with the level of achievement?
  • Do scheme effects conform to expectations? Have any counter-productive behaviours been encouraged?