>> I think that you have to be very self-driven. You need to find your own reward in the work that you do. I don't think there's really any way that you can kind of pay people or incentivize them to care about doing a good job about work that they just don't care about doing a good job. Hi, my name is Alex Patterson and I'm VP of Brand at Tough Mudder. It's kind of a losing proposition to say well we're going to pay your or incentivize you to do work that you don't really want to do. So the number one thing is you need to find people who both really want to be here and then really also want to be doing the work that they're doing. One of the things I get most satisfaction from is knowing that there are literally hundreds of thousands, if not now a few million customers out there who are running Tough Mudders, who are getting in shape, who are seeing their friends, for whom this means a whole hell of a lot. And that there's only about a hundred and fifty of us here at the company who make all that happen for these people. But we get to see them on social media, we get to see their likes and comments on you tube videos, we get to see them come out ten, twenty thousand people at an event. We get letters in the mail, we get photos being sent to us, so it's really gratifying to know that we're doing something that's really benefiting the lives of the people that, you know, are the customers of our company.

>> Tough Mudder is definitely a very demanding workplace in that, you know, we--we have very ambitious goals. Hi, my name is Jesse Bull, I am the SVP of Brand and Creative at Tough Mudder. We're one of the fastest growing companies in the world for several years running. And that, you know, that takes its toll and it can be you know frustrating. You have your ups and downs, constantly. But I think ultimately that's driven, you know, it's driven absolutely by our CEO whose an ambitious person, who has a great vision of what this company can become. But I think it's also driven by the people that we hire. You know, we have a lot of very ambitious, talented people and while they don't have big egos and they're not trying to climb some corporate ladder, they do want to make this company great and they do want to challenge themselves every day. So when you have a hundred and fifty people like that coming to work every day, you know, it creates a lot of work. And, again, I think that's work that people love doing, there can be, you know, it can get tiring at times, but I think people understand that, you know, it's that journey and that process of going through these ups and downs that really builds character and builds you as a professional.

>> One great thing that happens at Tough Mudder is we have our company goals, we have our department goals, and we also have our personal goals. And these are all in the form of objectives. Hi, I'm Antonia Clark and I'm a Senior Marketing Manager at Tough Mudder. Every single goal from your, you know, personal goals, feeds right into the actual company goals. And you'll review these with your line manager. You'll review these with other people on your team. But it's all about creating a very specific focus to things that you want to work on. And I would say in addition to that, we have goals, you know, every two to three weeks, when we have the event. And for me personally that's something that's particularly rewarding. Because I know that I'm going to send out, you know, a great course email, or we're going to work on Facebook or going to write a great blog post about an event that's coming up. And you get to see that goal realized immediately when you see the event that happened, you know, in Whistler last weekend. And you can see participants that are happy and excited, and you can say I helped to create that experience. I think my greatest reward is really the people that I work with. And to be sure we have an amazing, you know, healthcare package, and we have snacks in the office and we have a lot of this standard work perks. But for me, from day one, the most exceptional thing is the people that I'm working with, and I know that I can come into the office every day and be challenged and have fun and learn something new. And I think something that really speaks to the Tough Mudder culture is that a lot of my really good friends outside of the office are also people that I've met inside the office. And I think that's because everyone comes here with the mindset that this is something that I love to do. It's something that I enjoy doing and not only am I going to get my job done, but I have the back of every other person in the company, and I'm going to help them get their job done, too. We have a ton of freedom. Both, you know, for the work that we're doing and also, you know, the time that we take to actually do that work. And I think that's where the objectives come in, again. It's here are your objectives, here's the work that needs to be done. And it's sort of taking the time to make sure that work is done. But then also making sure that you have a really good work life balance. So, for example, I'm taking vacation and going back to a college party at Oxford where I went, and instead of just sort of coming on Monday, coming back into the office, I said can I work from the London office for a week. And they said yeah, sure okay. You know, as long as you get your work done, then of course you can go and do that. And for me, that was really important, because I had the flexibility to stay in London and see my friends there, but then also to go and connect with the London office and the whole team that's there. I think something that we're really great at is for those very small things, like oh that Facebook post was good. And someone says, like hey Antonia, I saw that, you know, that was awesome. And that means a lot. I think the small rewards go a really long way. And I also think on the larger scale in terms of career and professional development, we do a really excellent job in terms of, you know we have six month reviews and we have year-end reviews, of saying, okay, here's where you are. Is this where you would like to be? And you know, you need to do X, Y and Z to get there. And I truly believe that when, you know, you do get there, that you are rewarded. I started out as a Junior Event Planner and have been with the company for three years, and now I'm a Senior Marketing Manager. And that was both me having the goals that I wanted to achieve as they were set out by the company, but then also having truly exceptional managers who said, okay, I see where you want to go. Here are projects that will help you reach that goal.

[ Music ]

1. Which of the following should a firm not do when administering an incentive plan?

a.Clearly separate the incentive awards from employees' regular pay.

b.Determine the overhead costs associated with implementing and administering the plan.

2. A(n) _________ is a compensation plan in which all team members receive an incentive bonus payment when they meet or exceed production or service standards.

a.team incentive plan

b.Scanlon plan

c.gainsharing plan

d.ESOP

c.Ensure budgets are large enough to reward exceptional performance.

d.Allow incentive payments to become pay guarantees.