Dive summary:

• FMI, the consulting company that works with the construction industry, surveyed 224 corporate executives about incentive pay and whether their companies use it to try to motivate employees.
• The survey found that 88% of companies use some sort of incentive plan, but 21% think it's "very effective" in getting the results they want.
• The lesson is that there are steps companies can take to get better results, such as having structured incentives rather than discretionary plans and splitting the incentive between how the company does and how the individual does.

From the article:

If a company does not provide consistent updates, participants will have pre-determined conclusions. A quarterly progress update, along with informal individual performance feedback, not only minimizes potential surprises but also helps management develop and grow its direct reports. ...