H. R. Bonus Plan

EJennieS

I have been asked to design a bonus plan for our H.R. Manager. I would appreciate any ideas you might having concerning a bonus plan. Thanks.

Pork

EJenningS: I have been in 4 different companies from retail to now "HOG FARMING" as an HR. The retail opportunity had me on a 50% of base salary for meeting and exceeding planned goals. Goals in HR are pretty much influenced by the operation of everyone else, but Medical cost benefit reduction was achieved by doing some really innovative things. We fire our insurance company, hired our account manager, and became completely self insured. uced claims cost and claims processing time, we gave a rebate of 50 cents on the dollar to all employees in the plan that turned in all bills as a lump sum which would have been less than their individual total deductable. They were not processed but destroyed and the rebate was paid. The employees were happy to get a return on their deductable that really would not help them. we were glad not to have to process the individual receipts but as one lump sum. It was very cost effective when one realizes that over 75% of the group plan will not meet their deductibles.

The other companies have been subjective. I prefer the subjective method. MY boss the General Manager is told every time, I win another UE case. He is told every time I settle another vehicle accident and get our cost back. He is told every time I recruit and hire another manager person with out the use of a SEARCH FIRM sucking up thousands of dollars. He is told every time we handle a W/C claim without the use of an attorney. He is told everytime I handle another eeoc claim without the use of an attorney. His wife is an attorney and he knows what my value is and I trust him to do the right thing.

Turn over is certainly an area of figures, but the HR really doesn't control the outcome. If you don't control the outcome do not allow your self to agree to a bonus program. It will never pay and you'll be upset for all the things in which you do have a major impact.

My HOG"S worth.

PORK

hrbanker

Pork has some good advice. I'm putting together bonus plans for everyone in the instituition (self included). Some of the things we are incorporating: making the bonus a percent of salary, individual goals, corporate goals and meeting income goals for the year.