The right hire strengthens your team and adds value to your business.
Being in a position to share financial success is a good place to be. However, as businesses grow it is easy for bonuses to become expected and disconnected from what the company can afford.
Common problems we see
Bonus has become expected
When bonus becomes an annual entitlement, it is no longer a way to thank employees or motivate performance. It’s just additional cost to your business.
We are making bonus decisions based on feelings not facts
Bonus decisions made subjectively, based on opinion, gut feelings or emotions rather than facts, can create inequality and unfairness. Also, in our experience this approach usually costs business more than if they worked within simple fact-based guidelines.
Employees are questioning bonus criteria
If your employees are starting to question how bonus is decided, then your business is already shouldering unnecessary risk. It just takes one formal complaint to be made to cost you time and money.
How we help
We work with you to design and manage bonus schemes that are clear, fair and commercially sustainable.
Checklist
- Design a bonus scheme that is simple and practical
- Link financial reward to individual performance
- Build in transparent affordability and control
- Create employee communications so your team understand how it works
- Support you to make fair and consistent bonus decisions