Designing an effective performance-based payment system is a key challenge for HR and compensation leaders. Our organization has implemented a structured base-pay model supplemented by a department-specific bonus program—without relying on variable pay. This approach ensures fairness while maintaining motivation across different functions, particularly in sales, where incentives traditionally differ. A major focus has been on two critical aspects: ensuring financial transparency and optimizing communication. Interestingly, while many companies move toward digitalization, we found that traditional, offline-driven communication methods—such as sending physical letters—garnered higher employee attention and engagement compared to emails or online notifications. Despite not yet having an automated tool, our team successfully designed and executed a performance-based reward system using a platform for calculations while maintaining manual communication strategies. Additionally, we educate employees on how the bonus structure works, fostering better understanding and acceptance. We will share insights into designing a performance-based compensation model, effectively communicating incentive structures, and balancing long-term and short-term incentives—all without relying on a complex technological setup.How to structure a base-pay plus bonus model that aligns with department-specific goals. 

 In this session, you will learn

• How to structure a base-pay plus bonus model that aligns with department-specific goals.
• How to communicate performance-based rewards effectively to drive engagement and understanding.
• How to integrate learning and development into the performance reward system for long-term success.