Nonlinear variable compensation plans often come with the hassle of target negotiations, the ill-effects of employees trying to game the system, and other unnecessary/avoidable costs. Use linear schemes to avoid these complications and build an efficient variable compensation plan that will save both time and money.
This research will help you:
- Make the case for using linear plans to combat gaming, ease understanding, and lessen the administrative burden.
- Identify pain points and gaps to determine target employee segments.
- Design the linear variable compensation plan.
- Lead a team through McLean & Company’s process for eliminating targets from variable compensation plans.
Use this storyboard to develop an easy and efficient way to design and implement linear variable compensation plans.