Incentive schemes that are actually a disincentive

Many believe agency performance payments and payments for results don’t work. But that is because most have used these payments not as an incentive but as a huge disincentive. Make the carrot bigger than the stick and it can work a treat. Find out how here in a Golden Minute.


I love to get a bonus for a job well done. Don’t you?
But it seems that not many people can make it work with their agencies.
Perhaps it is because these incentives are often a big disincentive.
What do I mean?
Well often these bonuses are based on taking money off the agency fee. Let’s say 10%.
Then if the agency delivers the results, they get 15% back.
Now if that was your salary and I took 10% off you and gave you the opportunity to earn 15% back at the end of the year would you take it?
I don’t think so.
For an incentive it’s a big disincentive.
But that does not mean incentive don’t work.
You just have to make them work harder.