Evaluation of incentives and incentives for staff

Assessment of staff incentives and rewards

Development of bonus and incentive programs for employees

Bonus and incentive programs can effectively incentivize employee performance and behavior. However, if they are not properly designed and implemented, they can actually become an obstacle to your startup's success and frustrate employees.

Types of bonus and incentive programs for employees
You can create many different types of bonus and incentive programs for your employees. The most commonly used programs include:

  • Commission or bonus programs related to sales
  • Annual Performance Bonuses
  • Profit distribution
  • Bonuses for project milestones
  • Special bonuses

Creating a startup incentive program: the basics
When creating an incentive program for your startup, keep in mind that each organization is different and that reusing a program from another organization can be a big mistake. Follow the instructions below to get on the right track. If you have any doubts, please consult with a human resources specialist.

Step 1. Involve the right people in creating an incentive or bonus program.
Building a solid incentive or bonus program requires collaboration between your management, finance and HR staff:

Your management team should develop business goals and metrics
Your talent management or HR team should assess market conditions and develop overall compensation ranges.
Your startup should determine the components of the new program as well as the appropriate mix and scales.
Your team needs to develop and test alternative payment options to ensure success.
The overall target incentive is achieved when 100% of the goals are achieved.
Incentives paid for less than 100% achievement, match what you are willing to pay.
Incentives paid for overachievement are still within the necessary limits to achieve business goals and are sufficient to reward and retain high-end talent.
Your startup must constantly communicate and handle new hires, layoffs, program changes, program issues, and payments.

Step 2. Design a bonus and rewards program.
Keep the following in mind when designing your program:

How will your startup fund your employee benefits and incentives program?
What are you trying to achieve?
How much are you willing to pay to achieve goals that match those business goals?
Who will have eligibility for the program?
Is there any potential conflict of interest that should be removed or be aware of?
How would you relate the target incentive to the market value of the skills? (ie combination of base salary and incentives)
Will you accelerate the program beyond achievement? If so, by how much?
Will your program have a maximum payout?
Will you pay for partial achievement at all? If yes, define the parameters (consider the minimum threshold and easing parameters)
What will be the elements of the stimulus and how will they be weighted?
Are the objectives clear? Use the principles of "SMART" to set goals (i.e. specific, measurable, achievable, realistic and time bound)
How easy or difficult will it be to achieve these goals?
How much control or influence does each participant have over these goals?< br />How will you protect your startup's right to re-attend the program as required by the business?

Step 3. Implement your bonus and incentive program
Once you've dealt with the above considerations, it's time to implement your incentive program. This means you are ready

Define the program conditions - this includes the definition:

  • Eligibility
  • Goals
  • Performance evaluation process

Develop the program - this includes the definition:

  • Payment formulas
  • Minimum payout thresholds
  • Terms and calculation of payments

Establish an approval process (for example, who has the authority to make decisions about exceptions or unusual circumstances?)


bonus and incentive programs can effectively motivate employees; however, when creating incentive programs, make sure that you set up and implement them correctly, otherwise they can become an obstacle to business success and frustrate employees.


Development and implementation of intelligent systems for assessing personnel, employees, managers and other employees when hiring and existing employees.

The implementation of the innovative project is carried out with financial support of the Federal State Budgetary Institution "Fund for assistance development of small enterprises in the scientific and technical field"



The project is a resident of the Skolkovo Innovation Center

IC Skolkovo



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