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Posted: 9th June 2021
Can you share any info on how your short term incentive plans work, as well as any insights you have on sales incentives?
Belinda – I can’t advise on Sales incentives as they aren’t in my bailiwck but I can share my insights on Short Term Incentive Plans (STI). When I started at my company STI plans were different in each division and it led to all sorts of inconsistency and errors in calculations. It took a number of years and a iron determination but we now have one STI for the world covering 6,000 people in 60 countries from CEO down to the lowest level of admin role. We have 3 financial metrics including one group profit metric that applies to everyone plus a component for Personals. The process is automated with one std advice letter also driven by Workday so no manual advice. This would not have been possible without standardising to one plan for the globe. Keys are – one plan, std %s per level, fewer metrics the better to keep focus and automate as much as you can. With advice letters no flowery greeting card nonsense just the results and the payout.
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