In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman provides steps and recommendations organizations can follow in managing incentive pay plans and one step is to set an expiration date for the incentive plan and also provide notice if the plan changes.
Kleinman suggests that your organizations should consider setting a ‘sunset’ or expiration date on your current incentive plans (typically, at the end of the current fiscal year), so that you have an automatic ‘trigger’ reminding you to review them periodically and adjust them.
Also, if the organization plans to introduce significant changes to your incentive programs, which might be viewed as negative changes, then give your workers plenty of advance notice.
Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He can be reached at email@example.com.