answer:It’s only effective if it is completely objective. You have to have something concrete to measure, such as sales. Contracts which never materialize or are never completed have to be subtracted out too, so best to give credit only when payment is received.. There are a lot of problems with this. This seems to be more effective than reduction in pay for failure to meet sales quotas though. If you plan on giving prizes for points, just know, most employees would rather have money. I actually think it’s better to base a year-end raise on the performance for the current year.