This monograph describes how to design cash incentive programs in higher education as a way to help employees achieve their best productivity and as the most cost-effective way to communicate and stimulate the work behaviors that the institution values. Including a mentoring role as part of recognition of model departments or model managers not only spreads the expertise, but also provides a boost to the morale of those recognized. In designing an incentive pay program institutions should: (1) delegate selection to a small committee of the right people; (2) announce the award program to key stakeholders; (3) evaluate those nominated against clearly defined, measurable criteria; (4) celebrate appropriately and communicate awards to the campus community; and (5) teach and stimulate emulation of the model behaviors through forums, workshops, and one-on-one sessions with other members of the campus community. Incentive programs have many benefits to the institution itself. The cost of a program generally matches the amount of the cash incentive itself. Plans can be designed in a number of ways. Descriptions of model department initiatives and model individual incentives are included. Also discussed are challenges for successful implementation, and communicating about incentive programs. (Contains 16 references.) (JB)