Incentive Planning
Short- and Long-Term Incentives That Drive Results
Effective incentive planning aligns compensation with business strategy by balancing short-term performance and long-term value creation. Salary.com’s consultants will help you develop incentive plans that drive immediate results and support sustainable growth.
Whether you’re launching a new program or refining an existing one, our integrated approach ensures your incentives are competitive, performance-based, and tightly aligned with your organization’s most critical goals.
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Align Strategy and Execution Through Performance-Based Pay
By designing short- and long-term incentive plans that link pay to results, you create a system that drives accountability, supports retention, and delivers real return on investment.
Salary.com’s consultants will help you:
Align Compensation with Strategic Priorities
Ensure every dollar spent on incentives supports your most important business goals—both short- and long-term.
Attract and Retain Top Talent
Offer competitive, meaningful incentives that appeal to key contributors and high-potential employees.
Drive Performance and Accountability
Set clear, measurable goals tied to payout, reinforcing a results-oriented culture.
Balance Cost and Value
Model potential payouts and financial impact under different scenarios to control costs and optimize ROI.
Our Process: A Proven Path to Incentive Plans That Align, Motivate, and Deliver
We tailor our approach based on your organization’s unique needs and circumstances – engagements typically include these key steps:
Understand Objectives and Strategy
- Define organizational goals, talent priorities, and performance expectations. Clarify desired pay mix across base, short-term, or long-term incentives.
- Identify key business drivers and discuss the appropriate balance between performance-based and time-based rewards. Determine which financial or operational metrics best support your strategy.
Review Existing Incentive Structures
- Assess current short- and/or long-term incentive plans to evaluate their effectiveness, competitiveness, and alignment with business objectives. Analyze plan participation, payout data, historical results, and internal transparency.
- Benchmark plans against peer practices and industry standards to identify gaps and opportunities for improvement.
Benchmarking and Plan Design
- Design customized incentive plans that reflect your organizational strategy and market position. Define core plan elements such as eligibility, performance metrics, payout formulas, and incentive targets.
- Model multiple design options and forecast financial impact using proven methods like market-based, market cap-based, and present value of expected gain (PVEG) approaches.
Stakeholder Validation and Communication
- Collaborate with your executive, compensation, and HR teams to refine the plans based on internal feedback and external requirements. Ensure alignment with governance, compliance, and budget expectations.
- Craft messaging to support understanding and adoption across your organization—from the boardroom to frontline managers.
Rollout and Training
- Support implementation through detailed documentation, administrative tools, and training resources. We prepare your HR team to manage and administer the plans effectively, while also providing communication templates and guidance for a smooth rollout.
- Our consultants remain available to support future updates, refinements, or plan expansions as your organization evolves.
Why Choose Salary.com’s Consultants
Diversified and Experienced Team
Our individual consultants have decades of experience in a variety of industries. We have the knowledge and skills to help you in your specific organization, industry, and circumstances.
High-Touch Communication
Clear communication is a cornerstone of our process, and we will be with you every step of the way. Our team of consultants are available to provide guidance and support.
Salary.com’s Powerful Solutions
We leverage Salary.com’s industry-leading total compensation management platform, making full use of its trusted data and award-winning compensation solutions.
An Extra Set of Hands
Serious analysis is a big undertaking that all too often gets pushed to the bottom of the to-do list. This is a mistake, and everyone knows it, but sometimes your internal team just can’t get the time. Our consultants provide the extra resources and expertise to implement your compensation initiatives.
Third-Party Neutrality
Bringing in outside help demonstrates your commitment to fairness, transparency, and impartiality. It also guarantees a level of discretion not always possible within an organization.
Organizations Getting It Right
Insights You Need to Get It Right
