OTA

Target-Based Plans

Target-based short-term incentive plans are created when an organisation provides individuals with a series of "targets" or "key performance indicators" (KPIs) to achieve or be measured against.

Achievement of these targets or KPIs results in the participant receiving a reward, usually based on a percentage of the participant's base remuneration, or perhaps, combining with the profit pool design, a percentage of the profit pool.

Target-based short-term incentives are very common in Australia.

Advantages - focused, and rewards achievers.

Disadvantages - complex; expensive to monitor and maintain.

Contact OTA to further discuss how a target-based short-term incentive can assist your organisation.

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