Picking the right performance measures is critical to the success of your incentive plan. In deciding which measures to use, I found it helpful to compare them to 6 Principles of selection. Maybe they will help you too.
Controllable and Actionable -Employees should be able to influence the
outcome of the measurement
Easy to Understand – Employees should understand why it’s important
to their individual jobs
Integrated – The measure needs to be linked to top down
strategies
Quantifiable – The data used to generate the measure is clear
and consistent
Credible – The measure should be as free as possible of
human manipulation
Cost-Effective to Collect – The time and effort to collect data on the
measure should justify the benefits
