As organizations compete for top talent, incentive and bonus plans can be a critical aspect of an organization’s compensation and total rewards offerings. Incentive programs may target specific employee groups and business goals. At the same time, they also may need to be structured to allow organizations to be cost-effective and flexible, depending on their financial situation. In the recent economic and regulatory climate, many organizations have been regularly evaluating their incentive program design, for example bonus target setting and performance criteria. Understanding competitive incentive pay practices can help shape decisions on effective design aspects.