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Payout Determinations
  Performance incentive systems usually set 10% to 20% of base salary as the performance incentive. Once specific measurable goals are established, a dollar amount or weighting is assigned for each goal/objective. The "weighting" of the goals should reflect the district’s organizational priorities.

Assigning a monetary amount to the objectives establishes the payout weighting ($1,000, for example). With a 75% minimum and a 120% maximum the range of the bonus would be from $750 to $1,200 per objective. For an initial program three to five objectives are recommended. Particularly important objectives could receive a greater "weight" than other goals, e.g. $1,500 to $2,400 per objective for one objective and $750 to $1,200 for other objectives.

 

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Performance Pay vs. Incentive Pay
Program Characteristics
Setting Goals and Objectives
Example Goals and Objectives
Payout Determinations
Cost of Living Adjustments
Examples of Payout Calculations

Performance Pay Resources

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