Worksheet · KPIs and Incentives Health Check
Show each person what they are paid on
This sheet is for a business with a written bonus, commission or share plan; the check asks this row only then. For each person on the plan, it sets out what they are paid on and how their work moves it. It adds what they are on track to earn. It builds the Competent step of the check:
Each person on the plan can name their measures and work out roughly what they are on track to earn at any point in the year.
Step 1. One page per person
| Field | Content |
|---|---|
| The measures I am paid on | |
| How my work moves each one | |
| Target and payout for each | |
| Where I see my numbers each month | |
| What I am on track to earn now | |
| e.g. How my work moves each one | Margin: I set the discount on every quote I write |
Step 2. The control test
| Person or role | Measure | Can they move most of it? | If not, replace it with | Keep the business result as a hurdle? |
|---|---|---|---|---|
A bonus on a result nobody can move feels like weather.
Step 3. The mid-year check
Ask five people on the plan to work out what they are on track to earn. Compare each answer with payroll's figure.
| Person | Their estimate | Payroll's figure | Within about a tenth? |
|---|---|---|---|
Done when: people on the plan can name their measures, and their mid-year estimates of earnings land close to payroll's.
Adapted from our own incentives framework (Kearney era, 2001).
From the KPIs and Incentives Health Check. Your report links the sheet for each of its moves.