INCENTIVE PLANS INSPIRE EMPLOYEES
 TO GO THE EXTRA MILE
By Jennifer H. Elder, CPA

            The dictionary defines an incentive as �something that induces action or motivates effort.�

            Inspiring your employees to put forth extra effort can depend on how you structure your incentive plan.  Base compensation (week wages) is paid for completing a normal workload.  Incentive compensation should only apply to performance above and beyond the call of duty.  All too often, however, incentive plans become routine and expected and lose their motivational benefit.

            There are several ways to set up incentive plans.  Incentives can be one-time payments, quarterly payments, annual bonuses, or payments after closings.  Regardless of the format, every incentive plan should be:

• Fair - the incentive should be distributed equally to each employee who earns it.

• Timely - it should presented as soon as possible    after achieving performance standards.

• Equitable - The payment should be related to the        value of the achievement.

• Public - Be sure to praise the employee�s             exceptional effort in public.

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DATES TO REMEMBER

• 10/14/04 Next Regional Meeting at Surf-n-Turf.

• 11/04/04 State Board Meeting at Nemacolin Woodlands

• 01/07/05 Leadership Retreat at Toftrees in State College

• 03/17/05 thru 03/21/05 H.B.A.A. Home Show 2005

MEMBER DISCOUNTS

You can get discounts offered to NAHB members by the companies listed below. 

For more information contact Sheryl Shapiro at 800-368-5242 x8330 or via e-mail at [email protected]