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Map It Out

Don't make raises and bonuses hidden treasure--tell your employees what to do.

This story appears in the August 2000 issue of Entrepreneur. Subscribe »

If you base raises and bonuses on performance, do your employees know what to do to qualify? Employees who know from Day One not only what duties are expected of them but also specifically what they need to do to earn raises and bonuses are more likely to deliver consistently high performance and have a greater commitment to the company than those who aren't sure.

"The idea that if you do X, you will receive Y has been a central part of the compensation for sales professionals for many years, and it can work for other positions as well," says Randy Pennington, president of Pennington Performance Group, a leadership and management-consulting firm in Dallas. "It might not be tied to a promotion, but it definitely relates performance to increased income."

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