Moving to Merit-Based Incentives

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Author: Brenda Kowske | Source: Bersin by Deloitte | Published: March 29, 2013

The challenge: Moving from a tenure or level-based incentive structure is tricky. Emotions run high when it comes to compensation – as it should, given that we are talking about people’s livelihoods. Those who have succeeded in the previous system have come to depend on incentive program, and may feel as though they worked hard to reach their job level, only to have the game change. Those underserved by the current system feel as though incentives are unfairly distributed, but yet are still skeptical of change. Ultimately, employees want to know, “Will I get more money or have money taken away?” It’s a fair question.