10 Questions To Determine If Your Pay For Performance Program Is Effective.

10 Questions To Determine If Your Pay For Performance Program Is Effective


by David Hair, CEO nGROUP performance partners


Incentivizing workers is at the heart of free enterprise. However, in order for a pay for performance program to work in a labor intensive system, certain conditions and variables are necessary to consider when planning an EFFECTIVE incentive pay program.


  1. Does your pay for performance program involve a labor intensive workforce?
  2. Do your workers truly control their output? (If it is machine paced or the flow of work or availability of work restricts their production it probably is not a good application.)?
  3. Does your incentive program increase measurable productivity?
  4. Does your performance program include your key success indicators, such as attendance and attitude?
  5. Did you invest time and resources to set accurate and attainable labor standards?
  6. Is there a system in place to capture the work content on a consistent basis?
  7. Do you continue to monitor the program to ensure that standards remain fair?
  8. Do you quickly reset standards anytime there is a change in work content?
  9. Do you post performance results so workers can get immediate results and feedback? Creating a culture of competitiveness is key.
  10. Do you expedite incentive pay immediately?


If you answered “yes” to all 10 questions, congratulations on developing and more importantly maintaining a truly effective pay for performance program. If you would like to learn more about how nGROUP can incorporate pay for performance into a system that increases productivity, boosts morale and reduces your labor costs by a minimum of 10-25%, please message me, or email me at dhair@ngroup.biz.