Meetings & Conventions: Incentive News
Motorola Ties Rewards to Profits
In January 2002, Motorola embarked on a
four-year process to improve its incentive programs. As the halfway
mark approaches, M&C checked in with Jim Foote, vice
president and director of global rewards of the Schaumburg,
Ill.-based telecommunications firm.
M&C: Why did the company’s incentive
programs need to be changed?
Foote: Previously, Motorola had many different
incentive plans that focused on goals specific to the sectors and
functional departments. The new plan merges all the different plans
into one consistent framework. It focuses employees on business
performance, measured through the company’s annual profits and cash
flow, and individual performance, which shapes the size of awards.
And, as it is software-administered, the new plan makes
communication and tracking more efficient.
M&C: How does the new program
Foote: Employees are paid cash bonuses according
to how the company does. In April, 93,000 employees received reward
checks for their performance in 2002. Unlike some other companies’
incentive plans, in which a small part of the plan is weighted to
the overall organization’s business results, this one is heavily
weighted to the big picture.
M&C: Who is eligible?
Foote: Every employee, from a high-ranking
executive to an entry-level worker, is eligible for the annual
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