Multiple objectives, complex realities: over-simplify or just make it straightforward?
Beware of overly simplistic schemes, for your variable pay plan must first and foremost generate the behaviours and outcomes set out in your variable pay policy. Your plan should therefore:

• be as detailed as required to generate the desired outcomes.
• clearly communicate what is expected of beneficiaries in terms of performance.
• avoid counter-productive or negative effects arising from contradictory rules.
• keep the number of performance variables to a minimum.
• deliver an acceptable proportion of winners when the required results are achieved overall.
• be communicated effectively by management.