C12: Variable Pay - Incentives, Recognition and Bonuses
April 14-16, 2008

Course Overview

Designing for Results

This intermediate-level course presents the fundamentals of variable pay. The course focuses on compensation strategy and variable pay, definitions and the design and implementation of incentive, recognition and bonus plans. On the third morning, an optional certification exam covers the content of this course.

• Discuss variable pay as a component of total rewards
• Learn about the three categories of variable pay
• Examine internal and external factors when developing a variable pay plan
• Discuss the activities for designing the structure of the plan
• Find out aspects to consider in establishing target performance and payouts
• Learn about funding and distribution of plan earnings
• Discover how to implement, communicate and evaluate the success of your plan

Who Should Attend

Course C12 is designed for HR professionals responsible for designing, assessing or maintaining variable pay programs.

What You Will Learn

Total Rewards and Variable Pay

• Variable pay in total rewards
• Categories of variable pay

Supporting Business Objectives through Variable Pay

• Common business strategies
• Business objectives for achieving business strategies
• Business lifecycle
• Variable pay supports business objectives
• Variable pay in tandem with fixed pay

Types of Variable

• Incentive plans - objectives, approaches and considerations
• Short-term incentive plans
• Long-term incentive plans
• Bonus plans - objectives and considerations
• Referral bonus
• Hiring (sign-on) bonus
• Retention (stay) bonus
• Project completion bonus
• Recognition plans - objectives and considerations
• Spot awards
• Managerial recognition
• Nominations
• Organization-wide recognition

Developing a Variable Pay Plan - Phases 1 and 2

• Phase 1: Pre-Design

• Considering internal and external factors
• Obtaining management support
• Identifying the design team

• Phase 2: Design

• Determining plan objectives and plan type
• Defining eligibility
• Selecting performance measures