EXCESS-BASED PROFIT INCENTIVES

The use of incentives is critical in addressing the “what’s in it for me” mentality of the modern work force. We have to have incentives or we cannot have accountability—but we cannot pay a bonus for a result that we have already paid for in their wage. People who produce profits for the company beyond that which you have already paid them to produce should be allowed to share in that additional profit that they have produced. This is the basis of excess-based profit incentives. It is critical that this relates back to the basic budget of the business.