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Incentive pool and payout ratio
Check the incentive pool against payouts, coverage and achievement.
People & organisationHow it's worked out
- Payout ratio = actual ÷ target pool
- Pool funded on a plan where 100% achievement pays 100%
NotePayouts running well above achievement erode pay-for-performance. Check the curve, not just the pool.
Source: WorldatWork total rewards practice
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