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When it comes to executive compenation, including bonus plans, there is no one-size-fits-all solution.
Incentive plans, by definition, are supposed to affect people's behavior on the job, day in and day out.
If people know their job performance is linked to an incentive like a quarterly bonus, they'll likely develop new ways to produce better results. They'll naturally innovate to become more efficient--finding ways to finish work faster or improve quality without sacrificing cost. They'll seek new approaches to better serve customers. In short, engaged employees live in a world of cause and effect. They understand how their actions contribute to the success of the entire venture.
Marketers use A/B tests to set different call-to-action messages against another or find which of two messages will cause the most sales on an e-commerce site.
Managers can also use A/B tests for other things, such as designing the best way to motivate employees. A single A/B test can provide a significant amount of information about how employees will respond to several incentive strategies.
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