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March 22, 2010
Three Critical Keys to Success Regarding Incentive Pay

In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman provides three critical keys for success when handling incentive pay issues. These critical keys are:

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  • Key # 1: The reward must be enticing enough to be valued by employees. It must generate sufficient interest to encourage workers to put forth the effort required to earn the incentive
  • Key # 2: Workers must see an honest, obvious connection between their job performance and the incentive being offered
  • Key # 3: They must also believe there’s truly a link between how much effort they invest and how their job performance will improve (with no ‘gotchas’ or factors beyond their control that could wreck their performance)

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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