Importance of Bench-marking in Today’s Market
Companies worldwide and across different industries, such as oil and gas in Saudi Arabia, or construction in Dubai, or finance in London, know that they should implement a pay program that is comparative. What is the main point of the bench-marking?

Employee Keeping: Higher pay will make an employee more willing to continue working with their current company.

Staff Hiring: Being aware of what your market offers for the same category of jobs prevents both over- and under-payment.

Eliminating Salary Discrimination: Bench-marking the salaries of your company with those of other companies is a way not to disturb and have fair pay at the same time.

We can see that the introduction of various incentives that are adequate is what motivates the employees to go beyond their limits, thereby leading to increased work efficiency.

Short-Term Incentive Plans (STIP)
What is an STIP?
Short-term incentive plan (STIP), in which a company will reward its employees for meeting certain business goals within a little time, usually a financial year, is a payout plan. Generally, STIPs are structured as bonuses or profit-sharing.

These are commonly offered to:

Mid-level managers
Senior executives
Department heads
Bench-marking Examples
When bench-marking STIPs in the Gulf or UK, companies usually look at

Bonus as a % of Base Salary: For example, 10-30% of annual salary is common.
Performance Metrics: Revenue growth, project completion, or department KPIs.
Eligibility Criteria: Employees must meet certain thresholds (e.g., 90% of annual target).
Example:
A Saudi logistics company offers a 20% STIP to team leaders based on quarterly delivery KPIs. Competitor bench-marking shows similar roles in the UAE get 25–30%, prompting a review to stay competitive.

Long-Term Incentive Plans (LTIP)
Common Types
Long-term incentive plan (LTIP) are aimed at retaining and stimulating the top personnel of the company by linking their awards to the company’s long-term success. In these types of plans, the persons are held over several years in order to receive the benefits.

Popular LTIP Structures:

Restricted Stock Units (RSUs)
Stock Options
Performance Shares
Deferred Cash Bonuses
These are especially popular in:

Publicly listed companies
Startups preparing for IPO
Large corporations in oil, finance, and tech
Market Standards
Saudi Arabia/Gulf: Multinational companies often offer 3-year vesting periods with 20–40% of total compensation as LTIP.
UK: FTSE 100 companies commonly offer LTIPs equal to 100–200% of base salary for C-suite roles.
Tip: Use industry-specific bench-marking platforms or consultancy firms that specialize in the Gulf and UK markets for accurate LTIP data.

Sales Incentive Plans
How They Differ
Sales Incentive Plans differ from STIPs or LTIPs by reason of the fact that they are directly connected to the performance of a single salesperson and are quite often commission-based.

These are used for:

Sales Executives
Business Development Officers
Key Account Managers
Incentive types include

Commission-based % of revenue or profit
Tiered bonuses
Quarterly sales contests or awards
Best Practices in Bench-marking
Gulf Region: Most companies use a commission system of 5-10% for B2C and 2-5% for B2B transactions. On top of that, other incentives could be given during months like Ramadan.
UK: Inside sales teams usually get a base salary + 5–8% commission; field sales roles can go up to 12–15%.
bench-marking Tips:

Segment data by industry (retail, software, construction, etc.)
Include both monetary and non-monetary rewards
Ensure your targets are realistic yet challenging