9 Key Aspects For Successful Pay For Performance marketing Systems

A properly designed Pay for Performance marketing (PFP) Program enables companies to reduce their cost of labor while increasing the average take home pay of their workforce. IMS' Pay for Performance marketing Solution is a sophisticated, end-to-end incentive system that is accurate, fair and very effective. The cornerstone of our program is a proprietary software system that handles the complexity of the incentive program and enables us to reward employees based on their own level of productivity.

1. Employees have a direct impact on their bonus. The majority of PFP programs base an employee's bonus on factors that they cannot control. The highest impact PFP programs directly reward the employee on their individual Performance marketing. 

2. Daily reporting. Daily reports give employees, supervisors and managers vital Performance marketing information. An employee should know where he or she stands on a daily basis.

3. Production goals are set at a fair, achievable level. Setting production goals is a critical aspect of rewarding. Production goals need to be achievable and motivating.

4. The PFP Program does not reward the status quo. There should not be an increase in employee pay without an even greater increase in productivity. 

5. The system should be automated with technology. The tracking and management of a comprehensive PFP system can be quite complex. This complexity can be greatly reduced by automating the business processes with technology. 

6. Productivity constraints are identified. Some productivity issues are beyond the employee's control. These issues should be factored into the PFP Program and accounted for so employees remain empowered.

7. Work type variances are incorporated. It is vital that a PFP Program accurately incorporates the labor requirements for varying types of work. If work projects are just averaged, this can lead to favoritism in the work place. An effective PFP program generates the same bonus for the same amount of effort across all projects.

8. Bonuses are individualized as much as possible. The PFP Program should bonus the individual or small work team to maximize the effect of the program. Bonuses based on large teams do not motivate the high producers as much, thus lowering the overall effectiveness of the program.

9. Employees are trained on the PFP Program. It is vital that management and employees understand and embrace the PFP Program. If they do not, then it will struggle to gain traction.

I am the Vice President of Business Development at Integrated Management Systems

Labor Performance LMS is an Online Pay-for- Performance marketing labor system which enables companies to reduce their cost of labor while increasing employee morale and productivity. Reward engaged employees for being more productive while identifying disengaged workers hindering productivity.