Description
Your blueprint for bonus pay for startups, and bonus management as a business in transition during early stage development.
How to use discretion with a bit of structure to incentivise people using financial reward.
This is a blueprint of a financial incentive plan, which can be customised to your own needs and provide a framework to address diverse stakeholder interests, while delivering meaningful recognition of individual contribution to company success.
It shares with you simple, practical, defendable guidelines or principles to guide bonuses as a company grows bigger than new startup, setting up practices for future business stages.
You will have access to a ready-to-use, customisable set of rules to underpin a draft bonus operation. Once approved in line with your internal approvals framework, it will provide an annual governance framework for bonus payment, but in a way that Management retains a fair degree of discretion in calculated outcomes.
This document can be used as well as a drafting memorandum for your lawyers to use, if required.
About the consultant
Loshen Naidu
Loshen uses reward to create value. Quite simply, he makes reward simple. By breaking down complex plans and schemes so that each employee can understand the link between their work efforts and the reward outcomes, people are more likely to accept both good and bad company times.
Loshen has over 25 years invested as a reward specialist, starting in South Africa, continuing in Qatar, then Dubai in the United Arab Emirates and now back to South Africa. He worked as a consultant with big 5 firms and led the Africa reward practice for companies listed on the JSE and NYSE, large state-owned entities, and a sovereign wealth fund.
He brings a balance between creativity & innovation; and compliance & governance to the reward field. At all times, he tries to remove obstacles to a good understanding of reward.
His industry expertise lies in Energy | Mining | Resources | Telecommunications | Advisory | Oil & Gas | Technology | ICT | Gold Mining | Professional Services | Consulting
His global exposure is vast: South Africa | Dubai | Abu Dhabi | United Arab Emirates | Qatar | Doha | Saudi Arabia | Oman | Bahrain | Kuwait | Lebanon | Jordan | Palestine | Pakistan | Peru | Chile | Ghana | Nigeria | Cameroon | Sierra Leone | Ivory Coast | Liberia | Republic of Congo | Democratic Republic of Congo | Sudan | South Sudan | Syria | Uganda | Rwanda | Zambia | Australia | Philippines | UK | Netherlands
His skills: Board of Directors | Remuneration Committees | Annual remuneration reporting and disclosure | Executive remuneration | Long-term incentives | Short-term incentives | Performance-based incentives | Share schemes | Guaranteed pay | Reward communication | Job grading & sizing | Employee benefits | Reward strategy | Benchmarking
Why is this Important
If the company’s entire pay system is a football team, then incentive pay is the goal scoring bit! As important as defence and goalkeeping undoubtedly is to success, scoring goals receive the most focus and in the same way, incentives can be the attention-grabbing secret sauce within an organisation’s EVP.
It can also go terribly wrong, by the same token.
Measuring the wrong stuff, improper pay mixes, mismatched performance differentiation, and unrealistic targets can all contribute to diluting the incentives on offer.
It is often the case that employees satisfied with their incentives on absolute terms, become dissatisfied when comparing with others. In the modern work environment where information is freely available, such comparisons are the norm.
The key message is that there is no one size fits all in the world of incentives. Whether short-term incentives (STIs) or long-term incentives (LTIs), the plans must be a good fit with your overall strategy and your talent.
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