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bonus process

denjendenjen 93 Posts
in Compensation Vote Up0Vote Down
When I was given the task of HR at our company they had no structure to pay scales (except what the supervisors devised) or any structures to bonus’s. My question is…

Is there anyone out there that would have a defined bonus structure procedure, with incentives to all levels of the company, that would like to share with me? We currently have our performance management process where we define goals for individuals but the piece on bonus process is missing! I am in a manufacturer setting.




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  • NeedCoffeeNeedCoffee 595 Posts
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    I don't have a bonus process to share, because it would be too difficult to put in writing! If employees are bonus-eligible, they have a bonus based on some incentive that (a) they have direct control and influence over and (b) can be measured, quantified and tracked. I think there's a one-size-fits-all bonus program, at least not for our company.

    For example, a call center representative who sets up appointments between customers and salespersons will get a per-paycheck bonus for each appointment that is kept and another bonus for each appointment resulting in a sale. While this bonus structure works for callers, a manager may receive a monthly or yearly bonus based on the net profit of his/her department.

    When setting up a bonus structure, I find it easiest to write down what goals you want each job position to achieve, then find a way to measure their progress towards that goal.

    Good luck and sorry for the long post!
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  • mbeammbeam 258 Posts
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    As NeedCoffee points out, individual goals should be tied whenever possible to the job itself.

    We have a pay level system in place here that's based on a couple different factors for jobs that can be more readily quantified (i.e. inside sales team).

    From a company-wide perspective, we're in our 3rd year of a gain sharing program that is divided up on a quarterly basis by each person in the company (part-time and interns are pro-rated for hours worked). Our management bonus is tied in to this as well.

    It works very well - easy to understand, administer and is self-funding.
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