Short and Long Term Incentives



This component identifies the effectiveness of various incentive programs, both long term and short term, and assesses the extent of alignment of incentive schemes to desired performance outcomes in the short term and retention of key talent in the long term.


Short term Incentive schemes are typically designed to drive specific behaviours while long term schemes are designed to attract and retain key talent in the organization.


DID YOU KNOW? Our global benchmark data shows that the ThemeTypes of short term and long term incentives aligned to business, contribute the most in percentage terms, towards building the overall capability of the component. Do you have well defined strategy of Short and Long term incentives? Its applicability and efficacy to achieve business results?


The diagnosis will help you identify the extent to which the design and administration of the incentive schemes are achieving the objectives that they have been designed for. Our approach to short term incentive schemes is depicted in the diagram below:


Long Term Incentives are typically given in the form of deferred gains to key employees provided certain performance parameters are met in a defined time period, which typically is between 3 to 5 years. Designs of Long Term Incentive Schemes are typically based on projected financial targets of the company or achievement of some long term milestones set in the future. The incentive is conceptually a share of the financial gain on achievement of long term targets; the design takes into consideration the extent to which it can be made attractive for key talent keeping in mind the regulations that govern the nature of the incentive. We collaborate with specialist partners where required, and deliver solutions.

Short Tem and Long Term Incentive Plans

This solution will be delivered through our specialist partners

  • Assess the effectiveness of current Short Term and Long Term Incentive Plans through Industry Benchmark Surveys, Voice of Employee Surveys, Focus Group Discussions, Stakeholder Interviews
  • Design and develop appropriate Plans, aligned with the organization’s philosophy, competitive market best practices and stakeholders feedback- includes performance or productivity linked incentive plans, bonus plans, profit sharing plans, stock option plans
  • Develop Change Management and Communication plan for execution
  • Support in execution and evaluate the impact on agreed parameters.


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