Slide guide in the Bonus Plan

Aug 6th, 2022
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How to slide guide in the Bonus Plan

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well good afternoon and welcome to pay entries weekly webinar im kathy graham head of hr services i want to welcome you to todays event were going to talk about today employ bonus programs in 2022 theyre different now theyre more important i think our agenda today is why pay bonuses the types of bonuses and the bonus structure tips so how to set them up if you have any questions please put them in the questions box and we will answer those at the end of the session also you have a handout in the handouts section on your screen it is a pdf of todays presentation if youd like to view the recording later you can do so tomorrow on our website where we have all of our past webinars uh posted so lets start out by talking about why should you pay bonuses in the first place arent salaries and benefits enough well giving bonuses allows you to reward your top performers without increasing fixed costs year over year it adds you um you know some companies that have paid structures in plac

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Something thats well-designed can be clearly explained: in order to successfully define bonus objectives, its a good idea to draw up an inventory of activity indicators that will allow you to measure performance levels, e.g.: monthly revenues allowing you to measure sales, gross margins to measure costs, clients
Base your bonus structure on quantifiable results (excluding discretionary bonuses). Create specific, identifiable bonuses matched to measurable performance standards. Incentivize employees. Creative incentives that connect the bonuses to employees individual financial goals.
Pool typically shares 10-50% of profit/gain with employees. Profit sharing: Bonus payout commonly aligns to salary level in the organization. Comp-to-comp method: calculate percentage of employees salary as a % of total base salary spend in the company; payout this same % of the total bonus pool to the employee.
Establish clear and measurable goals: The bonus should be tied to specific goals that are measurable and achievable. These goals should be aligned with the overall goals and objectives of the company.
How to write a bonus request letter Draft the structure of your letter. State why youre requesting the bonus. Provide evidence for why youre requesting the bonus. Invite the supervisor to discuss the bonus with you further. Proofread your letter before you deliver it.
Ideally the bonus scheme should be described in writing as discretionary, non-contractual, reviewable and that it can be withdrawn by the company at any time. On a similar employment law note, however, making a bonus discretionary rather than contractual may not stop it having some form of contractual effect.
Create a written document outlining the employee bonus plans details. Give all employees this information so they understand how and why bonuses are given. Provide details on the bonus types in your plan, why they exist and how employees can earn these bonuses, especially if a bonus is tied to a specific outcome.
The purpose of bonus plans is to provide recognition for employees who go above and beyond normal work obligations. This makes employees feel valued, which makes them more likely to stay with the company.

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