Organizations are embracing CP plans because performance management systems are more effective when results are directly tied to the reward system. When the performance management system has a direct relationship with the reward system, performance measurement and improvement are taken more seriously. When a CP plan is implemented, organizations need to make clear what is expected of employees, what specific behaviors or results will be rewarded, and how employees can achieve these behaviors or results.

Also, high-achieving performers are attracted to organizations that reward high-level performance, and are typically in favor of CP plans. An organization’s ability to retain its star performers is crucial if it wants to retain top talent. Overall, CP plans enhance employee motivation to accomplish goals that match organizational needs. More specifically, CP plans have the potential to help change people’s behaviors and improve performance.