Performance Based Incentive Plans- A Means of Boosting Productivity within Your Organisation

Today’s competitive business environment has led to a greater emphasis on organisation and worker productivity. Attaining a higher level of productivity is considered to be key in achieving a thriving business, as resources are used more efficiently in the business work process to create more value for the firm. It is commonly viewed that organisational productivity is fairly low due to the ‘production process’ but it is also important to note the role of employees in boosting productivity. Organisations are increasingly investing in the development and implementation of performance based actions which contribute to the achievement of organisational goals.

Performance based incentives link individual and corporate achievement of predetermined outcomes with remuneration. In other words, pay is allocated on the basis of the individual performance and business results rather than paying for the job or length of service.

Many businesses which have implemented performance-based incentive programmes have realised the benefits. They have found that an incentive program that rewards improved business results translates into increased productivity, higher profitability and a more motivated staff or employees.

An article in the Harvard Business Review of March-April 2000, called ‘Leadership That Gets Results,’ reports that ‘of six leadership styles studied, the use of rewards was the single highest predictor of ‘organizational climate’ and in turn had a direct correlation with financial results’.

In his article, ‘The Reward That Makes Employees Work Harder’ on The Business News Daily website, Chad Brooks adds, ‘A study by workforce solutions firm Kelly Services found that 40 percent of employees feel they would be more productive if they had their earnings linked to certain performance or productivity goal. Currently, nearly a third of the companies surveyed use a performance-based pay system with their employees. Performance-based pay involves any arrangement where an element of the total salary is tied to meeting performance targets, including profit-sharing, performance bonuses and sales commissions’.

However, before an organisation can develop a successful performance-based incentive program, there must be a clear vision. Without such direction, it is difficult to identify the types of performance that should be rewarded. Therefore, organisations must create a clear vision and identify the steps required to achieve it. This is important as, a clear corporate vision is the foundation on which all effective performance based incentive systems are based.

The corporate vision has to represent a high-level understanding within the organisation of where it would like to be in the short, medium and long term. After defining the vision, subsequently the elements of an effective performance-based plan can be identified. Without a clearly stated vision, even the best designed programme will drift aimlessly. It is also important to bear in mind that although incentive programs can encourage employees to perform at high levels of productivity, employers should always analyze the merits of the program prior to implementation. They must determine the optimal incentive plan that is in the best interest of the business and that will help improve performance and promote ethical behaviour.


Personal Productivity

Productivity has many definitions. How you choose to define it will be based on your point of view. It can be thought of as a measure of efficiency (doing things right) and effectiveness (doing the right things). For you to understand just how productivity can impact on your life, you first have to understand a little about what personal productivity is and how its improvement can enhance your development.

The European Productivity Agency defines productivity as ‘A state of mind… an attitude that seeks continuous improvement of what exists. It is a conviction that one can do better today than yesterday and that tomorrow will be better than today’.

Strengthening your personal productivity enables you to fully utilise some of your positive characteristics and/or improve the negative traits you may have. By doing this you can accomplish many tasks more efficiently. A high level of personal productivity is the result of a combination of planning, organisation and hard work. There are many benefits to being proactive about completing a task. Such things can be achieved by ensuring that stress levels are reduced as a result of reduced procrastination, the improvement of personal and work habits such as time management, increased motivation, focus and dedication and setting personal timelines for task completion. You can actually try implementing the following as tips to improving your personal productivity.

Determine how much time you have available-

One of the most valuable resources that you have is time. Once you determine how much of it you have, you are then able to figure out how many tasks you can realistically complete in that set period.

In doing this, you will become better able to manage your time efficiently and this is considered a very important skill, whether it is in your studies, in your career or just within your personal life.

List what tasks you would like to accomplish during this time and prioritise them!-

Having established goals and making a list of them, enables you to see what you will be dedicating your time towards. You should then be able to prioritise the tasks on the list – decide which goals are most important, which deadlines that need to be met and which will take the least time to complete. Having better time management skills therefore improves how well you will be able to effectively manage your time for the tasks which you have organised. Setting a specific time to complete each task also allows you to know how much you can get done in any given day.

Focus and then split the tasks listed into smaller, more manageable tasks-

Setting priorities enhances focus and enables you to see the big picture clearly. Once you have set your target, you can then determine how you should go about accomplishing your goals. This can easily be done by breaking up your major tasks into smaller bits that would be easier to manage and would therefore allow you to concentrate on one thing at a time.

Creating a to-do list also gives you an advantage because it helps you to physically track your accomplishments. This can also provide you with the additional determination needed to stick to your path and reduce procrastination.

Start working quickly-

After creating your personal to-do list of your smaller, more manageable tasks, you should immediately start working on your first assignment. Completing the first one and then starting on the next, always marking off each task completed on your to-do list, and finally monitoring your time allows you to sustain the momentum needed to achieve your goal. It tells you how far off your schedule you are and also gives you time to rethink you strategy if you have fallen behind. It can also help you to identify the time of day that you get the most of your work done, i.e. your peak times.

Stay motivated and dedicated, keep a positive attitude!-

Being able to manage your time well and strategizing causes you to stay on your course and helps to fuel your motivation. We all experience a good feeling from knowing that we have extra time to spare or that we have successfully completed all of our tasks within the time which we have set aside to do them. This thereby inspires you to aim higher and to do better which in itself bodes well for productivity.

Being productive should be the aim of every individual, regardless of age or station. By maximising our resources, we can be significant contributors to our schools, businesses and society as a whole.

The Link between Soft Skills, Customer Satisfaction and Productivity


Most people link productivity with businesses, especially when assessing how well employees are performing, however, there are many different facets that can be looked at in relation to productivity.

To the National Competitiveness and Productivity Council, national productivity is a whole made up of all of the interrelated aspects of productivity which can be found within a society. Productivity in the workplace is highly important, as it is through productive companies that competitive nations are born. In essence, in understanding the relationship between the two you can see why it is essential that everyone within the nation’s workforce plays their part in raising national productivity.

 But as a worker, how does one go about raising productivity? There are actually many ways that this can be done. From improving on time managements skills, to focusing on quality of products and services, the list is endless. However, one of the easiest set of practices that one can implement as an employee to help raise productivity is to simply improve on customer satisfaction.  

Customer satisfaction is a must for any business that wants to be successful, simply because it guarantees customer loyalty and from a business standpoint a loyal customer is reliable investor.  Companies that are able to retain reliable investors are on the road to doing well.  In time, as the company’s profit increases, workers will be privy to the benefits of the company’s growth.

Ray Kroc, the founder of McDonalds once stated,’ If you work just for money, you’ll never make it, but if you love what you are doing and you always put the customer first, success will be yours’.  Judging by the international success of McDonalds, one has to believe that he knew what he was talking about.

So how can an employee deliver customer satisfaction to their customers?  Well, there are four basic factors that every employee should embody to help them do so. These traits are:

  • Skills
  • Courtesy
  • Efficiency
  • Pride


Every employee should be skilled in their area of work. Skills determine an employee’s role within a company and help them carry out their set tasks well.   Employees should take advantage of any training opportunities that are available to them. If there are none available, employees should be made comfortable enough within their working environment to suggest to their employers that training would be an asset in addressing customer satisfaction within the establishment. Individuals should also read up on their chosen vocation as it could aid in improving their work performance.


Courtesy should not just be saved for the work place; it should be an outward expression of politeness that people use daily in their lives. It should always be sincere and heartfelt, even at work. Saying ‘Thank You’ and smiling are a couple of ways that employees can treat customers in a courteous manner, but there are also other ways in which this can be done.

They include:

Putting the Customer First

The customer, regardless of who they are, should always come first.  Therefore, any work carried out must always be acceptable to the customer. In doing so, the customer is always made happy. In addition, by making the customer happy, the employee also feels a sense of achievement.

Finding Out What They Want

Not all customers will be the same. Whilst many may know exactly what they want and be able to express this, there will be those who are a little less sure. For customers who do not say what they want, a good employee would observe their behaviour and consider their feelings and try to figure out their actual needs.

Putting Ourselves in the Shoes of the Customer

We all would like to be treated in a certain way and this is something that all employees should keep in mind when serving a customer. Whilst interacting with customers, employees should consider what kind of product or service that they would like to receive if they were the client. Then they should make sure that what is delivered to the customer is of the same high standard.

Establishing a Rapport with Customers

Employees should always try to remember their clientele.  Not just their faces but also their likes, their dislikes and their preferences. In doing so, a personal touch is added to the service.   

Not Practicing Preferential Treatment

All customers should be treated the same. From those who spend a lot within the establishment to those who spend a little.  From friends of the family, to complete strangers. Each customer contributes to the survival of the company.  With this in mind, all customers should be treated with the same courtesies.

Being Flexible and Adopting a Problem-Solving Approach

When solving any issues that come up with customers it is always best to adopt a problem solving approach. It is unwise to stick too rigidly to rules and refuse to be a little flexible to customers. Remember, through discussions, it is possible to come up with solutions to customers’ problems.


Everyone has their own deadlines to meet. An employee stalling and taking unwarranted time on a project can put everyone else off schedule. Thus everyone should always strive to produce their output on time.  In doing so progress is not hampered, including that of your customers

In being efficient and delivering the product in a timely matter, each employee must also make sure that they hand over the final product to the customer with zero defects. Even the smallest error can spoil a company’s image.


All employees have the right to be proud of the work that they carry out. Thus, employees should always carry out their work well. Not simply because it is what is expected of them but also because they enjoy doing what they do and take some pride in it. Taking ownership of work in this way makes an individual strive to improve their skills and knowledge. In so doing, there is the constant motivation to improve, be more efficient and practise courtesy without thought and effort on a daily basis.

The Distinction Between Productivity and Production

As the issues of productivity begin to take centre stage in Saint Lucia, it is important to note the difference between productivity and production.  Making this distinction is critical for businesses as it is quite possible that production/output may increase without a corresponding increase in the levels of productivity.

Production is defined as “the process of using resources/inputs to add value to a product or service, so as to meet the needs of the customer” (Business Studies Online).  In the production process, input/resources include land, labour, capital and enterprise.  During production, value added is applied to raw materials resulting in a good or service or the output of the firm/organisation. 

On the other hand, productivity is the ratio between the output (good or service) produced and the inputs used in producing that output.  It therefore, measures how efficiently the production inputs such as labour (workers/employees), capital, land, etc. are utilised in an economy or a firm to produce a given level of output.

Although the two concepts are related, it is important to note the difference.  During the production process, the firm is concerned about the combination of inputs, prices of those inputs as well as the prices of the goods and services to be produced.  Once the firm has settled on its output/input combination, then it is important to measure the efficiency of that combination. 

 It is important to note that an increase in production may not necessarily lead to an increase in productivity and vice versa.  During the production process, productivity growth occurs in the following manner:

  • An increase in output while the levels of input (labour, land, capital) used remain the same (unchanged);
  •  Output is increasing at a greater rate than the levels of input.

Conversely, productivity would decline if:

  • Output is increasing at a lower rate than the levels of input; even if output increase, productivity would have fallen;
  • Output is falling while increasing the levels of inputs.

Therefore, productivity refers to an efficient utilization of resources. It relates to the entire functioning of an organisation or economy. It details how working effort, money and materials are converted into products and services that can be sold at a competitive price on a competitive market.

Productivity is regarded as one of the key drivers to economic growth and sustainability.  It is placed very high on the agendas of Governments and international agencies and it is important that an accurate interpretation of the term is understood by all. Furthermore, it is through this understanding that productivity levels can be measured and interpreted correctly.

Thus, when differentiating between the two terms, one should remember that productivity is the ratio of output to input in relation to production. It is also a measure of the efficiency of production.  High levels of productivity leads to an increase in a country’s economic well-being.


How and Why We Measure Productivity

One of the best ways of improving employee performance is through productivity measurement. There are multiple reasons for this. Firstly, measurement provides quantitative and qualitative evidence on whether an employee is meeting the targets set by the company. Also, in relation to an employee’s job and their set tasks, measures have the potential to improve understanding of the concepts of quality, productivity and continuous improvement. It should be noted however that in measuring productivity, a lot depends on the approach the organisation takes to measure performance. If the right activities, behaviours and outcomes are captured through the approach, they can be effective motivational tools for employees as they demonstrate desired behaviours and important strategic tactics adopted by the organisation.

In their article, ‘Use Measures to Promote a Culture of Quality- Measures can help embed quality into the way employees work and think’, the American Productivity and Quality Centre (APQC) state, ‘Enterprise leaders cannot dictate  or mandate quality, but they can influence the culture of quality for their staff’.

So saying, within any organisation, a culture of productivity measurement should be cultivated in which a compass of performance is set by developing objectives, goals and targets. An organisation should then measure its performance in relation to these targets, as it is through them that managers are able to delegate performance expectations to their staff.  Today, performance measurement and the use of key performance indicators are considered organisation competencies and thus, it is expected that all managers implement them, especially those within human resources. HR Managers are accountable for the significant investments made by a company in its employees and therefore are required to be on top of their game when strategic questions are asked. There are differing ways that they can do this, but some of the most notable include;


The recruitment process is expected to be led by managers these days. Their job in doing so is to process and participate in the development of job descriptions which accurately reflect the duties to be performed by the employee and which meet organisation targets. They must also have a system for monitoring performance on a monthly and quarterly basis and maintaining the link between strategy and operations.

Training Needs Analysis and On-the-job Training

In addition to having an assessment of their staff’s performance, managers and line supervisors must be able to provide researched advice on the training needs of their staff to match the future talent requirements of the organisation. In some cases, they are expected to deliver the training or know where to source the most appropriate technical and general training.

Employee engagement and Motivation

Employees now expect that the organisational climate will meet employees own needs and motivate them to perform their duties within or even exceeding the expectations of the organisation.

Return on Investment

Management will be keen to know whether the investment made in salaries paid, training conducted and occupational safety standards maintained is indeed yielding results evidenced by increased output, sales and profitability. The HR practitioner will be expected to conduct the analysis, using key performance indicators and other types of trend analysis, to respond to the questions.

It is apparent that whether the central focus is a local company or a nation at large, a measurement of productivity must take place. It is an evidence based activity which is vital to assessing whether or not goals and objectives are being achieved. Even though viewed at different levels, company managers and bodies such as the NCPC are seen as being accountable for the process of productivity measurement.

However, even though a lot of responsibility does fall on their shoulders it is necessary for each individual in society to see productivity measures as being a concept which can be implemented a little closer to home.  It is important that a culture of measurement is entrenched within the population. This is essential, so that whether at work or at play each member of society should be able to measure and assess their own performance in helping to build a productive nation.

About the National Competitiveness and Productivity Council (NCPC)

Established in October 2013, The National Competitiveness and Productivity Council (NCPC) is responsible for the identification of key issues related to competitiveness and productivity in Saint Lucia.

The NCPC and its Technical Secretariat is committed to providing the necessary advocacy and research to produce timely and effective recommendations to policymakers on issues that affect both competitiveness and productivity on island. For more information about productivity or on the NCPC, visit;, call 468-5571/5576 or send an e-mail to


Are Your Meetings Productive ?

In today’s competitive business environment productivity is key to the success of enterprises. It is an essential element in helping any firm grow. In light of this, businesses should continuously work towards maintaining high levels of productivity. However, there are some day-to -day business activities that may work against this objective. One such activity is an unproductive business meeting.

In his article, ‘Why Meetings Kill Productivity’, author, businessman and motivational speaker Ray Williams states, ‘How often have you sat through a meeting and said to yourself, “what a waste of time, I could be doing something better!”  Meetings take up an ever-increasing amount of employees’, and particularly managers’ time. My experience in working with executives and managers is that 40-50 percent of their time is taken up with meetings, that either they call, or have to attend. Which leaves precious little time left to actually get work done.’

However contrary to Williams’ opinion, meetings do not have to be completely unproductive. A poorly managed meeting does have the potential to subtract valuable time of the day. On the other hand, if well planned and executed, a meeting can prove to be a fundamental component of a productive day.

Mihir Patkar, a frequent contributor to the ‘lifehaker’ site, in his post ‘How to Have a Meeting That Isn’t a Complete Waste of Time’ details some practices that can ensure that meetings are productive. Prior to any gathering, he mentions that there are three W’s that need to be addressed, that is: when, who and why.

  • Why- It is essential that before any meeting is called, the meeting leader should know why the meeting is called. If this is not clear, nothing constructive will be gained from the meeting. Patkar continues ‘A meeting shouldn’t be the place where you brainstorm ideas, you need to tell the attendees to do that in advance and show up with a clear list for discussion. Similarly, the meeting organizer should send the required reading at least three days in advance, and make it concise enough so that everyone can actually read it before they show up.’
  • Who- Remember that not every individual needs to be present at every meeting. If a meeting does not require a contribution from a certain individual but this party wishes to be kept informed of the discussion; consider the option of sending the minutes after the gathering. If you are the one invited to the meeting and your workload is heavy, there are certain questions that you can ask the person inviting you that can determine whether you really need to be a part of the occurrence or not. Such questions include, ‘Will all in attendance be called on to make decisions?’ and ‘Are you going to ask for something at the end?’ Depending on the answers received one can determine whether or not your presence is needed.
  • When- Patkar goes on, ‘Coordinating with multiple people is difficult, but not impossible. Online meeting scheduling service, ’When Is Good’ analysed 100,000 responses to 34,000 events and found that Tuesdays at 3pm is the most agreeable meeting time for most people. Of course, you don’t need to stick to that, coordinate and find out your own most agreeable time. It is also wise to remember that the length of the meeting is important too.’

Once the meeting is scheduled and participants are invited, the meeting must be focused.  Meetings can go off-track easily, and hence, time and energy can be wasted discussing matters which are not on the agenda. Productivity guru Merlin Mann says that each meeting needs a designated “parent” who steers the meeting responsibly.

In addition, it is important to ensure that extra writing material is available in case this is needed by participants. Participants should be encouraged to take notes. Notes help clarify thoughts and are also useful in post-meeting discussions. It is also essential to have a person designated to take the minutes of the meeting. Minutes provide a record of the discussion that can be mailed out to persons who need to be kept informed.

After the meeting, participants should benefit from the experience and there should be an understanding of all future plans. Patkar states, ‘In his article- “Seven Imperatives to Keep Meetings on Track”, Robert C. Pozen, Senior Lecturer at Harvard Business School, says there are three questions that should be asked at the end of each meeting. These questions include:

  • What do we see as the next steps?
  • Who should take responsibility for them?
  • And what should the timeframe be?

The answers to these questions by each participant, should be recorded and sent out. In doing so it will confirm everyone from the meeting is on the same page. It will also provide accountability since no one can say they weren’t sure or didn’t remember what happened.’

Business meetings cannot and should not be avoided when they are necessary, but as is evident, there are certain things that can be done to make a meeting productive.

About the National Competitiveness and Productivity Council (NCPC)

Established in October 2013, The National Competitiveness and Productivity Council (NCPC) is responsible for the identification of key issues related to competitiveness and productivity in Saint Lucia.

The NCPC and its Technical Secretariat is committed to providing the necessary advocacy and research to produce timely and effective recommendations to policymakers on issues that affect both competitiveness and productivity on island. For more information about productivity or on the NCPC, visit;, call 468-5571/5576 or send an e-mail to


Mental Health and Its Impact on Productivity

Everyone has the right to employment in conditions of security, equity, freedom and human dignity. For persons with mental health problems, achieving this right is a challenge.

According to the World Health Organization (2001), mental health is defined as ‘a state of well-being in which the individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to his or her community’. However, in today’s workforce many people seem to be plagued by this disease and it is often overlooked as they are usually hidden by individuals in the workplace. For people suffering from mental illness, social exclusion is often the hardest barrier to overcome and is usually associated with feelings of shame, fear and rejection. Therefore, the stigma that is attached to having a psychiatric disorder dissuades most from admitting to its existence. There is also a reluctance to seek treatment out of fear that it could result in job loss.

As a result, mental health disorders often go unrecognised and untreated. This is not only detrimental to an individual’s health and career but it also influences productivity in the workplace. Mental illnesses have a huge effect on interpersonal relationships at work. People who suffer from mental illness may withdraw from others, act in unexpected ways or take a lot of time off. This can therefore strain relationships with supervisors and co-workers.

Employee performance, rates of illness, absenteeism, accidents and staff turnover are all affected by employees’ mental health status.

Treatment, if applied could ultimately alleviate symptoms for the employee and improve job performance. However, accomplishing these aims, especially in St. Lucia, will require a shift in attitudes as they relate to the nature of mental health disorder. Common mental health problems that can be found in the workplace include depression, bipolar disorder, attention deficit hyperactivity disorder (ADHD) and anxiety. The symptoms of which are all highly documented, but they tend to manifest differently at work. Although, effective mental health services are multidimensional, the workplace is an appropriate environment in which to educate individuals and raise their awareness on mental health. It is highly suggested that companies acknowledge and invest in the mental health of their employees. Not only for the sake of their employed workforce but also for the company. When organisations focus on the practical things that can be done to alleviate mental illness in the workplace the numbers of hours worked and productivity improves. Therefore, in the long term, costs spent on mental health care may represent an investment that will pay off- not only in healthier employees, but also for the company’s financial health.

About the National Competitiveness and Productivity Council (NCPC)

Established in October 2013, The National Competitiveness and Productivity Council (NCPC) is responsible for the identification of key issues related to competitiveness and productivity in Saint Lucia.

The NCPC and its Technical Secretariat is committed to providing the necessary advocacy and research to produce timely and effective recommendations to policymakers on issues that affect both competitiveness and productivity on island. For more information about productivity or on the NCPC, visit;, call 468-5571/5576 or send an e-mail to