The company goals

The reward program is based upon the company goals, which should represent vital issues necessary for the survival and success of the firm. For example, assume that your company has two goals for the current year:

1. Net Profit Before Tax of $5 million

2. A customer survey score of 8.5 on a scale of 0-10.

Next, you must be very clear about their attainment. First, both of the goals listed must be attained in order for the company to pay a reward. Keeping customers happy is not enough if you can’t make a profit, and making a profit without maintaining a satisfied customer base is also inadequate. Second, the numbers listed for each goal must be attained—there is no reward for getting close, nor is there a pro rata payout for the reward based upon getting close.

We like the goals to be measured often in order to keep an updated status. Consequently, goals that are established on a quarterly or even monthly basis bring an immediacy and urgency to all the employees. Note that each month’s goals may differ, depending upon factors such as the seasonality or cyclicality of the business.