Picking the Right Performance Measures

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