Incentives (i.e. bonuses based on personal results, company’s performance etc.) aren’t things to be afraid of. Yes, they create expense within accounts; they’re an additional routine to maintain and so on, but what they actually do, if set up properly, is motivating people more. 

First and foremost it’s important to define the basis for calculating and initially agreeing on a bonus. What are the tresholds that trigger a bonus being paid? Once that’s accomplished it’s about the amounts – are we discussing one month salary, several months’ salary or some other amounts?

Now that the basics are covered, it’s important to understand that metrics which trigger the bonus and its amounts should be under tighter observation and controls. If the triggers are manipulative in nature, they’re more prone for being manipulated with. As such, you should come up with controls or separate evaluations which aren’t as subject to possibilities for manipulation.

Defining a bonus scheme should always include not just financial performance measurements, but also achieving personal goals and some other indicators which in fact couldn’t be manipulated.