Incentives are among the most effective strategies that organizations put in place to enhance better organizational performance. Incentives increase the productivity of organizations’ staff, hence, better organizational performance. The middle-level managers, similar to the general employee, deliver better performance through additional efforts when encouraging incentives applies to them. Meanwhile, motivating the middle-level managers of an organization is significant, following that they are the link between the general employees and the top managers of every organization. Incentives improve individual middle-level managers’ performance through importing their loyalty to the organization, reducing financial constraints they face, and motivating them to collaborate with the employees in the best possible way to improve the organization’s performance. Although incentives work in the same way for categories, general employees and managers, an incentive plan for the middle-level managers should contain some unique benefits ( Williams, 2019) . Sales commission, stock options, project bonuses, profit sharing, and incentive plan levels are some of the effective elements that should form an effective incentive plan for middle-level managers.
Incentive plan levels involve giving bonuses to employees based on their hierarchical lines in the organization. The plan is most effective for middle-level managers in an organization for several reasons. In such a plan, managers in the middle-level managerial positions are awarded for group performance. In such a setup, a manager gets a financial benefit as an individual employee as well as the leader of the excellent performing group ( Anderson, 2020) . Such an incentive plan is effective for middle-level managers as it encourages them to keep helping members of their teams to adjust on their work output and attain the highest performance possible. It also makes them feel appreciated for the hard work they do in ensuring their team keeps leading counterpart teams in the organization.
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Another vital component for the middle-level managers’ incentive plan is offering stock options. Offering stock options entail giving a chance for the managers to purchase company shares at a particular cost. Middle-level managers benefit from purchasing the company stocks at a lower value and selling them when the stock value increases ( Williams, 2019) . In an instance, a middle-level manager is given such an offer, and they will work towards improving the company’s profitability so that the market price of the stock hares increases. However, this is only possible if they put in more effort in their day to day work. Offering the stock option to the managers, therefore, make them adjust on their performance by putting more effort in setting strategies for overcoming milestones in the business and working towards business successes.
Middle-level managers’ incentive plan should also involve profit sharing. All aspects of an organization depend on the efficiency of a middle-level manager to succeed ( Williams, 2019) . They are the link between the top managers and the general workers, making them a critical component of an organization’s workforce system. In a profit-sharing deal, a particular percentage of the total profits realized in an organization is shared with the managers. Although this approach gives awards to all employees, the middle-level manager earns higher as the plan involves haring the profit based on the individual employee’s base salary. Employees get motivated to working harder so that the number of benefits they get can keep increasing.
Sales commission as part of an organizational incentive plan for middle-level managers involves giving a certain percentage of the total sales to the sales managers for every specific volume of sales made ( Johnston & Marshall, 2013) . The managers are given targets which they are encouraged to meet. Exceeding the targets in a sales commission setup earns the mangers a higher percentage and hence, a corresponding higher income. Sales commission gives middle-level managers a reason to research and find marketing strategies that need to be implemented to increase sales and capture higher market share.
Human resource managers can also consider project bonuses as part of the incentives for middle-level managers. For project bonuses, the middle-level managers get awarded twice for their efforts in the completion of a project ( Anderson, 2020) . When awarding middle-level managers for successful project completion, they are first awarded in public and in private. In the public award, they may be given relatively higher quantities of the benefits compared to the rest of their group members. Awarding them in public is necessary as it encourages the other managers in different departments to put more effort ( Williams, 2019) . Since the award is given to them alongside their followers, it helps in easing their work when working with their followers, and they get the essence of putting effort into their work. Giving the benefits to the managers in private, on the other side, encourages them to put more effort into every project they are handling so that they keep quality project management and completion a priority.
Although the middle-level management staff is employees, just like the rest of the company workforce, they are unique, and hence, they deserve a special treatment. This is the reason as to why their incentive plan should be unique from that of the rest of the company staff. Firstly, they are the ones in charge of implementing strategies of development that the top management has put in place ( Johnston & Marshall, 2013) . They relay strategies from senior management to employees and put in place approaches of mobilizing the employees to prioritize them. Additionally, the middle level managers oversee employees working and make genuine suggestions regarding employee performance and adjustment that would improve their productivity.
References
Anderson, J. (2020). What Are Incentive Plans? Retrieved from https://smallbusiness.chron.com/incentive-plans-1776.html
Johnston, M. W., & Marshall, G. W. (2013). Contemporary Selling: Building Relationships, Creating Value - 4th Edition (4th ed.). London, England: Routledge.
Williams, O. (2019, March 5). Examples of Management Incentive Plans. Retrieved from https://smallbusiness.chron.com/examples-management-incentive-plans-63109.html
