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Management Incentive Program
Providing employees with an extra bonus incentive can be a great way to energize your employees while letting them participate in the profitability of the company. Our unique program helps employees to put their Eyes on Excellence.
While MAPS helps in managing your annual Performance Appraisals, Eyes on Excellence will assist you in developing, monitoring and evaluating your annual Management Incentive Program.
How Eyes on Excellence Works
On an annual basis, employees are placed in bonus levels which correspond with their position and responsibility. These levels are tied to a specific dollar award. Jericho will help you decide what level is right for each eligible position. We will also help you determine a tailored award pool of dollars which will vary based upon your company's profitability.
Eyes on Excellence is divided into two critical areas: 1) the achievement of company goals and 2) the accomplishment of individual Focal Areas. The distribution of the award is divided between these two groups. As an example, many companies determine that 70% of an employee's eligible bonus is tied to company goals and 30% is tied to individual goals. While there is no right or wrong distribution, at Jericho, we strongly encourage that the level of bonus is ultimately tied to company profitability.
Achievement of Company Goals
Depending on the Key Performance Indicators (KPI) you use, you can set up to ten company goals. These can range from Inventory Levels, Income, Expense to Income Ratio, Inventory Turns, Sales per Employee, or whatever you choose.
Three levels of achievement are then developed for each KPI. Let's say you want the Company Goals to constitute 75% of the potential bonus. In this case, the total of Level 1 KPI's would be 25%, Level 2 (which is generally your budget) would equal 50%, and Level 3, your stretch goals, would equal 75%.
Achievement of Personal Focal Areas
Within Eyes on Excellence, participants will develop and achieve a bonus based upon their achievement of five Focal Areas. These Focal Areas are broader than goals and are tied into the strategic plan of the organization. Once a Focal Area is agreed upon between the employee and the supervisor, Action Plans are developed which flow into a Master Calendar for quarterly monitoring.
Tailored to Meet Your Specific Need
The greatest benefit of our Management Incentive Program is that it can easily be customized to meet your needs. We will work with you to ensure that your organization has its Eyes on Excellence!