Characteristics of a good incentive scheme

The incentive plan should be economical which refers to the profitable ROI that is gained by the scheme. The ROI acquired surely must be greater than the implementation cost of the scheme. This is being thoroughly affected to the profits gained by the organization which is the ultimate goal of any organization. The simplicity of the incentive scheme is the way to get it more solid catalyst for the employees performance increment since when it is simple all the employees could understand the mechanism, the way it operates and could gain the maximum from it by hard work which should be up to the standards. Another most vital characteristic of an incentive scheme is that it should be attractive enough for the employees to be motivated and perform exceptionally well to gain the benefits. The abilities and the skills of the employees must be taken into account very carefully when creating the incentive scheme since it should be equitable for all the employees who are entitled. Flexibility is also an essential characteristic which refers to the ability make any changes as per requests of the employees.