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The do's and don'ts of incentive schemes

Strategies for motivating employees.

At Numera we can advise businesses in the London area on many aspects of business life. Here are some pointers for employee incentives...

Incentive schemes can have great benefits both for your business and your staff. Rewarding good performance motivates your star employees, and encourages others to emulate their achievements. However, there are pitfalls, so tread carefully when devising an incentive scheme. Here are some do's and don'ts:

  • DO reward results
  • DON'T reward activities
  • DO set targets that encourage employees to maximise profit opportunities
  • DON'T set targets that do not fit in with your overall objectives
  • DO reward results in proportion to the extra profit they generate
  • DON'T set upper limits to the amount that can be earned in incentive payments
  • DO use incentives to take overall pay to the high end of the market
  • DON'T tamper with basic pay levels - keep them at competitive market rates
  • DO use equitable criteria so that everyone feels equally motivated
  • DON'T forget to communicate the successes and failures to all concerned on a regular basis
  • DO fund incentive schemes from the additional revenues they generate
  • DON'T make promises you can't afford to keep!

Call us if you would like help in developing strategies for motivating employees and reducing staff turnover.

If you are in the London area and are looking for help and advice from a team of professional accountants and business advisers, contact Numera.

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Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

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