These are tough times. Most industries are in recession; many companies are at risk of failing. Fear of lay-offs pervades the workplace as negative economic news accumulates and it can be difficult to motivate staff – but this is when you need them most.

In tough times, the best managers stand out even more. Moreover, handling staff well now can pay high dividends when good times return. My research and experience suggests ways to make incentive systems work effectively even in this economic climate. Below are some suggestions of how to think through goal setting and evaluation.