Reward focus and results that link to creating new value
As you think about your strategic plan for the year ahead, ensure you are also planning for your employee compensation plans to reward alignment with your business strategy. I often ask business owners and CEO’s if they offer bonus plans for their employees and the answer is often yes. But the follow up question, are those bonus plans aligned well with what you’re looking to achieve in your strategic plan…. and unfortunately the answer isn’t a resounding yes.
Think about your employee bonus plans just as you would any other investment in your business. When investing in developing a new product or service, in a new piece of equipment or a new business system, any of these would drive effective planning internally at your business to ensure you will project getting a great return. Apply this same thinking to your employee bonus plans.
Look at your strategic plan and ask yourself, do our employee incentive plans ensure that our team will be aligned with and rewarded for focusing on and delivering on our targeted deliverables? If yes, then you’re on track for potentially getting a great return on your bonus plan investment and building your company value, or net worth. But if not, rethink your bonus plan soon so you get the benefit of a full year of focus by your team in support of your strategy and have the confidence that you’re investing in creating new value within your business.
