Middle East
Incentive Design

Rewards Incentive Design

What is our perspective?

The concept of a bonus as a part of a competitive total reward offering is now firmly in place for most roles. Companies use this as a way to focus and motivate employees and as a way to control their variable pay bill. We believe that good incentive design needs to be coupled with first class communication and implementation if the company is to see a worthwhile return on their investment. We always view incentive pay as "pay at risk" because we link the payment to stretching and challenging goals which must be delivered before payment is made.

How can we help clients?

We can help with every part of process, from design to implementation. Our global experience and accurate market data allows us to ensure that you set target incentive levels which will allow you to attract and retain talent. However the key to good incentive design is not the amount of the award but clearly articulating what the employee has to do to release the payment. We help companies cascade their goals by dissecting their corporate strategic objectives and translating them into measurable targets which can be easily communicated to staff. Our financial modelling techniques ensure that the cost of the plan is well understood and that the shareholders are happy that the expense incurred provides value for money given the targets the company need to hit to release the payment. Our team of reward specialists have experience in designing a wide range of plans ranging from specialist plans for small employee segments such as sales incentive plans, to corporate wide bonus structures for all employees.

We also have a specialist executive compensation practice which deals specifically with long term incentive plans that reward the senior management team in a way which recognizes their contribution and their worth in the market. We can help companies navigate the regulatory minefields which surround executive compensation and make firm recommendations on the key issues such as:

  • the comparator market for measurement
  • the appropriate payment vehicle (Equity or Cash)
  • the vesting schedule for the award
  • the importance of relative corporate performance
  • the need for good and bad leaver provisions

Our key differentiating factor is that we see our projects through to completion and we help our clients communicate the plans and embed them in the organisation. We firmly believe that this phase of the project is required to make the investment in the design phase a success.

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