Defining How Rewards Should be Assigned

Incentive design step

This article is referenced by our incentive design guide as step #5.

Once you have defined attainment levels and associated rewards, you have to define how rewards should be assigned to individuals.

Assigning rewards based on individual performance results

Here we assume that you measured sales performance by individual.

You may be tempted to believe that the only option is that rewards (earned by individual performance) should be assigned to those individuals. While this is the default, other options are possible.

For example, instead, you may want part of (or all) the individual performance reward to go to:

The individual's manager

Example: this employee is in training and so the manager should get the reward
Example: managers should get a "cut" of each team member's performance

The individual's team members

Example: this employee always works with other team members, and so all rewards should go to all team members (with a splitting rule)

Configuration requirements

The more complex your reward assignment rule, the more configuration is needed to ensure rewards are assigned correctly.

Assigning rewards based on team / territory performance results

Here we assume that you measured sales performance by team / territory.

You may be tempted to believe that the only option is that rewards (earned collectively by the team / territory) should be assigned to its members as per a split rule. While this is the default, other options are possible.

For example, instead, you may want part of (or all) the team performance reward to go to:

The team's manager

Example: managers should get a "cut" of each team's performance

Configuration requirements

All rewards must be assigned to individual beneficiaries.