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March 26, 2010
Ensure that Your Incentives Reward, Change Behavior

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. One step is to ensure that the organizations incentives reward and change behavior. Kleinman states that:

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  • Your incentives should not be seen as ‘gifts’ to your employees
  • If you’re recognizing (and giving awards to) workers basically for showing up, you’re wasting your time and money during a recessionary economy
  • Structure your programs instead so that the incentives go to employees who actively do something to improve your organization e.g. improve their selling skills, broaden their customer service techniques, or take other measurable actions that improve your bottom line
  • Do not get drawn into the myth that everyone needs ‘stroking’ when times are tough. Not everyone in your workplace may qualify for incentives and that’s ok

Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. He can be reached at

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