This book helps you design a goal-based compensation system. Eighteen pragmatic decision components provide all relevant information on suitable goal types, appropriate levels of target bonuses, alternative compensation structures, implementation strategies, and potential risks of goal-oriented remuneration models. Many organizations want to lead their employees in a goal-oriented manner and also reward them based on goal achievement. When developing a goal-based compensation system, they face a very complex task that involves making a multitude of individual decisions. Additionally, there are numerous labor law questions to consider during the design and later implementation of the system in practice. This guide outlines the individual decisions to be made and presents the respective alternatives along with their implications.