Motorola Ties Rewards to Profits

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 work?
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 programs.

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