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The Rule of Threes

Foolproof Principals for Mastering Incentive Plans

Designing, managing, and communicating incentive plans are among the most challenging hurdles HR and Compensation professionals face today. Great plans cannot be generic; instead, they must be structured to align closely with a company’s strategy, culture, and goals. At the same time, effective programs must also deliver pay that is in line with both effort and achievement.

This exclusive guide will simplify the complexity surrounding the incentive planning processes by providing guidelines that are restrictive enough to exercise a healthy degree of control over incentive pay, yet flexible to meet the evolving needs of your organization. More than 25 years of designing and observing compensation programs has led Dan Walter, Managing Consultant of FutureSense, LLC, to develop The Rule of Threes, a principled approach to mastering incentive plans.

In this exclusive guide, you will learn:

  • The fundamentals of The Rule of Threes, including metrics, goal levels, and programs
  • Why most organizations only need three of each for a successful incentive plan
  • How to apply the approach to long-term, short-term, and commission plans
  • Alternatives to the Rule for organizations with unique considerations

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