Phone: 01242 260066 | Email accountants@mitchells.org

The do's and don'ts of incentive schemes

At Mitchells we can advise businesses in the Cheltenham area on many aspects of business life. Here are some pointers for employee incentives...

Incentive schemes can have great benefits both for your business and your staff. Rewarding good performance motivates your star employees, and encourages others to emulate their achievements. However, there are pitfalls, so tread carefully when devising an incentive scheme. Here are some do's and don'ts:

  • DO reward results
  • DON'T reward activities
  • DO set targets that encourage employees to maximise profit opportunities
  • DON'T set targets that do not fit in with your overall objectives
  • DO reward results in proportion to the extra profit they generate
  • DON'T set upper limits to the amount that can be earned in incentive payments
  • DO use incentives to take overall pay to the high end of the market
  • DON'T tamper with basic pay levels - keep them at competitive market rates
  • DO use equitable criteria so that everyone feels equally motivated
  • DON'T forget to communicate the successes and failures to all concerned on a regular basis
  • DO fund incentive schemes from the additional revenues they generate
  • DON'T make promises you can't afford to keep!

Call us if you would like help in developing strategies for motivating employees and reducing staff turnover.

If you are in the Cheltenham area and are looking for help and advice from a team of professional accountants and business advisers, contact Mitchells.

Try a site search Tax returns, budget, pension, rates and allowances...

Contact details

Office: 01242 260066

Company Registration No: 4161638
Company Registered in England and Wales.
Company details
Mitchell Glanville Limited
Registered Address: 41 Rodney Road, Cheltenham, Gloucestershire GL50 1HX

Mitchell Glanville Limited regulated by the Institute of Chartered Accountants in England and Wales If, during the provision of professional services to you, you need advice on investments, we may have to refer you to someone who is authorised by the Financial Conduct Authority, as we are not. However, as we are licensed by the Institute of Chartered Accountants in England and Wales, we may be able to provide certain investment services where these are complementary to or arise out of the professional services we are already providing to you.

© 2022 Mitchells Chartered Accountants. All rights reserved. We use cookies on this website, you can find more information about cookies here.