Leadership & Organization Design

Commission, Incentives and Bonus: Rewards That Drive Performance

Commission drives sales, incentives drive behavior and bonus drives loyalty. If the reward system is not linked to KPIs, OKRs and strategy, it becomes a cost, not a driver.

ImproFact graphic for Commission, Incentives and Bonus: Rewards That Drive Performance
  • Commission drives sales.
  • Incentives drive behavior.
  • Bonus drives loyalty.

Most companies mix them… and end up achieving none of the three.

They reward without direction, pay without purpose, and then wonder why performance is inconsistent.

The truth is: If your reward system is not linked to KPIs, OKRs, and strategy, it becomes a cost, not a driver.

Have you seen this happening in your organization?