Incentive programs are standard practice - so much so that many managers routinely implement them without much consideration.

Big mistake.  Make sure you get your money's worth from incentives by asking these key questions:

Who gets the prize?  The most logical answer may be the top performer.  But if you reward only the top performers, are you really getting a good return on your investment?  After all, these people are already producing, so you're not likely to see a lot of growth to correspond with your incentives.  Instead, find a way to compensate top producers while also motivating those who could become superstars with a little extra effort.

What prize do you give?  Money matters, but other rewards have a longer-lasting impact.  No reward will take the place of adequate financial compensation for a job well done, but assuming that your staff receives a fair wage, your incentive plan may get more mileage from non-cash rewards.  Cash provides immediate gratification but tends to be forgotten once it goes to the mortgage company or becomes part of the mutual fund.  A reward like a big screen TV, however, is a continual tangible reminder of an employee's accomplishment.

What do you want to reward?  This question is critical to the success of any incentive program because it forces you to focus on the specific behaviors and accomplishments that you wish to reward and to consistently reproduce.  Don't make the mistake of focusing solely on production numbers.  Remember that employees must engage in a series of behaviors in order to attain those high numbers, which means you should also focus on recognizing and encouraging such interim steps as planning, collaborating, networking, increasing product knowledge, and so forth.  One suggestion is to talk to your current top performers to determine the steps they take to get results, then find ways to reward others for taking a similar approach. 

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