The business has a clear incentive system

What does this mean?

  • As with the performance management system above, the business also needs to have a clear system explaining all monetary and non-monetary incentives that could be earned within the business.
  • The system must clearly list all the incentives that are possible and have a transparent mechanism for managing and distributing incentives as applicable.
  • It is important that incentives are not used to replace an employees’ ‘normal wage’, but are rather seen as an extra benefit.