Design of Short-Term Incentives Plans (STIPs) & Targets Setting

STIPs are primary used to promote productivity, efficiency of the employees as well as to enhance employee attraction, loyalty, engagement, and employer branding.

Well designed STIPs support organizations to link company’s success with employees’ reward and encourage the desired behaviors.

Why STIPs:

• Build a uniform performance-based culture across the Company and focus on specific outcomes
• Encourage better performance and reward the achievement of business, function and, in some cases, individual results
• Tie compensation to profits and provide significant reward for exceeding set goals
• Assist in attraction and retention
• Provide a market-competitive Total Cash

Target Settings and Alignment:

Organizations understand the importance of goal setting, but setting goals is not enough. It’s imperative to align employee goals to team goals, and team goals to organizational goals. Organizational alignment is a key differentiator between high-performing and low-performing companies.

Main benefits to Aligning goals throughout the organization:

• Goals set the tone for organizational strategy
• Priorities are clarified
• Employees recognize of how their contributions are building toward team and organizational goals
• Aligned goals connect employees and teams

The STI plan offering is an end-to-end solution consisting of multiple steps contributing to the development, implementation and maintenance of a strong incentive element in your organization.

ICAP People Solutions  can assist with the entire development and implementation of a STI plan or with specific phases of the implementation process.