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3 Monumental Reasons to Construct a Bonus Plan for Your Team: Boost Results, Not Entitlement
Rewarding results over entitlement is the cornerstone of a high-performance team.
I made an excuse not to adopt a performance bonus pay plan for years. There was no good reason for this thinking. I assumed bonuses were clunky to execute and typically rewarded the wrong behaviors.
It’s a poor assumption since I’ve been in sales my whole career and see the impact of the right and wrong incentives.
That’s until I tried everything to get an operational KPI to improve, but it never did.
For years, one of my teams understood the KPI and acknowledged its criticality, but the KPI rarely improved as time passed. People were doing their job, but nothing extraordinary happened until a bonus was attached to their core KPI.
Then, and only then, were people concerned about better results.
Does this make it right? No, it should have been improved regardless, but it’s also human behavior, and sometimes, we need an incentive to push us in the right direction.
Once I discovered that bonuses can reward superior results, not just doing the “job,” my belief system changed.
