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The vital training of human resources staff in incentive compensation

The vital training of human resources staff in incentive compensation
November 02, 2022

Human Ressources

Incentive compensation is a unique motivational tool in companies. But for it to be fully effective, it is important that employees have a clear and detailed understanding of it as soon as they are interviewed. To avoid disappointment, limit premature departures and keep staff motivated, human resources professionals must be properly trained in incentive compensation.

Why can a lack of incentive compensation training in human resources be fatal?

As a motivational booster, during a job interview, incentive compensation is often presented to the applicant as a benefit. However, even if the variable component of the remuneration offered can be highly appealing, its very principle is based on the risk of not earning a bonus if performance is poor. The job interview is precisely the time when the recruiter should explain, precisely and honestly, the terms of the incentive compensation.

It is clear that a human resources manager who is not well informed about their company’s incentive compensation policy will tend to oversell the scheme. Worse still, when faced with a cautious job applicant who is eager for details, they may not be able to give the right information. The misunderstanding resulting from the HR manager’s lack of preparation may result in the applicant refusing to join the company or being very disappointed if they do not obtain the expected gains.

At the same time, HR professionals who are not trained in incentive compensation can bring the whole company into disrepute. Many companies set up a recruitment process in which a human resources manager, an operational manager and even a sales director are successively involved.

During this type of recruitment process, the candidate is therefore required to discuss the details of their remuneration with various members of the company. If they receive contradictory information and realise that the human resources manager has exaggerated the potential gains from the variable component of their salary, they will be disappointed. Moreover, it should be remembered that the discrepancy between the information given at the time of recruitment and the first few months of actual work is one of the main causes of turnover.


TRAIN YOUR TEAM TO INCENTIVE COMPENSATION  >Managers, Human Ressources Directors, Incentive Compensation Experts : it  exists a training for each profile!  SEE OUR PROGRAMS

Incentive compensation: essential knowledge to acquire

Training human resources staff in the reality of incentive compensation is therefore crucial in more ways than one: it allows promising appointments to be made and limits turnover. Human resources staff therefore need to master three essential concepts.

  • It is fundamental for companies that all HR managers understand the concept of motivation and benefit from it during recruitment and throughout the career path of each employee.
  • Knowing how to manage an incentive compensation project should also be an essential skill for every HR manager.
  • The subtleties of employment contract management, and the evolution of these subtleties, as well as staff representation bodies should also be no secret to HR professionals.

What incentive compensation training is available for human resources staff?

To meet the challenges that incentive compensation poses for human resources, Primeum offers a training module which is specially designed for the various stakeholders in HR. In just seven hours, it unpacks all the fundamental knowledge and skills involved in incentive compensation. The programme covers in depth the three concepts that are essential to human resources.

Human resources professionals who are properly trained in incentive compensation guarantee successful recruits, reduce the number of departures in the first year and contribute to the growth of employees throughout their careers.

To introduce incentive compensation in your company seamlessly and efficiently way, explore our different training modules for HR professionals.


TRAIN YOUR TEAM TO INCENTIVE COMPENSATION  Managers, Human Ressources Directors, Incentive Compensation Experts : it  exists a training for each profile!  SEE OUR PROGRAMS


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Blog post author

Hervé de Riberolles

For more than ten years, I have been leading a number of projects for our customers to diagnose and re design the incentive compensation systems of their teams. The diversity of environments (sectors, countries, populations) that we face, my team and myself, requires a perpetual adaptation of our methods and our offer. The motivation of employees is, from my point of view, exciting, constantly evolving and at the crossroads of several areas of expertise. That's what makes it so interesting.

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