A shift from static variable pay to dynamic incentive models, directly linking earnings to performance across key business verticals
Time to Read: 4 mins
Background
Thomas Cook India Ltd., a leading travel and forex services brand, operated with traditional fixed-variable pay structures that offered limited differentiation between average and exceptional performers. Businesses like Leisure Travel, MICE (Meetings, Incentives, Conferences, and Exhibitions), and Forex demanded agility, output-driven rewards, and motivation levers that could drive higher productivity and business outcomes.
A transformational initiative was launched to redefine incentive programs, making them dynamic, output-linked, and aligned to business-specific drivers.
Objective
To replace legacy fixed-variable frameworks with business-specific, incentive-led structures that maximize motivation, enhance earning opportunities, and reward high performance.
Actions Taken
- Business Segmentation & Metric Identification
- Designed separate incentive models for Leisure Travel, MICE, and Forex businesses based on unique revenue drivers, margin priorities, and customer acquisition models.
- Identified primary KPIs: revenue targets, margin realization, client retention, forex transaction volumes, and cross-sell achievements.
- Incentive Framework Design
- Introduced progressive payout models: higher payouts as individuals crossed higher thresholds.
- Built tiered achievement slabs with accelerators for top performers.
- Communication and Rollout
- Developed easy-to-understand incentive calculators and payout simulators.
- Conducted focused communication sessions and management workshops to embed the philosophy of “earn more as you perform more.”
- Governance and Review
- Set up dashboards for real-time tracking of achievement versus incentive eligibility.
- Quarterly reviews to fine-tune metrics based on evolving business needs.
Results
- Increased average incentive payouts by 35% in the first year, significantly boosting frontline motivation.
- Witnessed 20% uplift in Leisure Travel and Forex revenues directly attributable to incentive-led behaviors.
- Higher retention of top performers, with many citing “earning potential” as a key reason for engagement.
- Built a meritocratic and performance-first culture across key revenue-generating businesses.
“Incentives should reward possibilities, not just predictability. We enabled our teams to dream and deliver bigger every single month.”
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