Getting People Engaged – The Case for Incentives

incentives, goalSituation

A manufacturing company was significantly under performing its peers and investor expectations for earnings and return. Additionally, safety was a significant issue as too many people were getting hurt. People were not engaged in day-to-day operations of the business, and generally did not know the expectations of management and investors.


Introduction of a short-term incentive plan that rewarded individuals based on meeting overall EBITDA and safety targets. This required management to clearly communicate the target at the beginning of the year, and progress against the goal throughout the year. The initial target was set in a manner that was achievable with work and was modified by individual performance.


  • Immediate reduction in recordable and lost time incidents
  • Doubling of EBITDA in a two year time frame
  • Increased interest and engagement of employees in the strategy and results of the company