Incentive Plan Communication

terrim

We are planning to "revamp" our current incentive program. In recent years, these payments have become viewed as an expected extension of salary and not as payments for work "above and beyond" the normal scope of the job. We'd like to communicate the change to employees and offer that they develop five primary goals for the coming year on which they will be evaluated (these should not be "lay-ups", but closer to "three-point shots", to use basketball imagery). We will then use their success/failure to determine the amount of their year-end bonus (% of goals accomplished equals % of anticipated bonus awarded). Has anyone put one of these systems in place? Do you have any comments or warnings? Do you have any ideas on how to communicate these changes to employees? Many thanks!!