Incentive Compensation Design

Incentive compensation design refers to creating pay systems that motivate employees to perform well by aligning their rewards with organizational goals. It involves determining how bonuses, commissions, or other incentives are structured based on individual, team, or company performance. The goal is to encourage behaviors that drive desired outcomes, like increased sales or improved quality, while ensuring fairness and sustainability. Effective design balances motivation, fairness, and cost, ultimately helping organizations achieve strategic objectives while rewarding employees appropriately for their contributions.