Specific parameters
As ICMI.com states, some goals do not work because they are just too vague. Especially when it comes to bonuses, it is crucial goals be set up in a transparent and specific manner so that it is clear whether or not they have been achieved.
Measurable goals
Goals also need to be measurable. Define the parameters you will use in measuring goals. Use specific numbers, percentages, statistics or other quantifiers that you and your team members can follow and clearly determine whether or not goals have been reached.
Achievable goals
Though it might seem the higher you aim the bigger success you will achieve, the truth is that if you set up unachievable goals, team members will soon realise it and lose motivation to work on reaching them. Moreover, when the time for paying bonuses comes, they will be frustrated. Set up goals that are challenging but not unachievable.
Parameters employees can influence
It would be a mistake to set up success indicators that employees cannot influence in any way. If you define aims that are beyond the scope of influence of employees (such as goals not for the specific department but for the company as a whole) or if there are too many third-party persons working on these goals, your team members will lack the necessary motivation.
Clear time frame
The bonus structure must have its time frame clearly defined. What precise time period will be assessed, by when should the goals be reached, and when will the bonuses be paid?
Continuous monitoring
It would also be a mistake to set up goals but then assess them only, let's say, after twelve months when bonuses are due. Monitor the situation continuously, talk to your employees regularly and give them advice, especially if you see they are falling behind with their goals.
-mm-