Project based rewards have the potential to improve project performance – encouraging on-time and on-budget delivery whilst minimising retention issues for mission critical project team members. But these incentive schemes are not without their own challenges, especially in terms of design and governance.
Incentive and bonuses can affect the financial performance of the project and, with an increase of capital expenditure (CAPEX) especially in Asia due to large players increasing their investments in China, India and South East Asia, even a small variance on cost and time can cost billions of dollars in escalation to organisations. Thus, managing and rewarding talent throughout the project life-cycle is key to ensuring timely and effective delivery of these projects.
Though the concept of project-based incentive is common in the west, it is relatively new to Asia. Organisations have increasingly looked at project-based reward as a way to help bring focus to project timelines, milestones and overall deliverables. Project based reward can be used to reward a broader, collective effort rather than individual performance. If structured appropriately, it helps retain key talent over the life of the project.
Read this article to learn how to:
- Design an incentive plan for optimal project performance.
- Choose between bonus and incentive, how much and when to pay.
- Identify which individuals/roles to include and what to reward.
- Ensure success during rollout.