Bonus system: types, development, implementation
Posted: Sun Jan 19, 2025 5:40 am
What is it? A bonus system is a document developed by a company to provide financial incentives to employees. It includes target indicators and bonus accrual conditions.
Which one to choose? There are many different schemes for implementing a bonus system. Some are based on KPI, others are aimed at increasing the loyalty of the company's employees (the thirteenth salary), and others use bonus payments.
The article explains:
What is the bonus system?
How bonus ig data package systems help businesses
Basic schemes of bonus systems
Reflection of bonus issuance in documents
Mandatory payments when calculating the bonus
Indicators in the bonus system
Bonus indicators for different departments
Implementation of KPI in the bonus system
Stages of developing a bonus system
5 Mistakes in the Development and Implementation of a Bonus System
Bonuses for financial problems in the company
Frequently asked questions about employee bonuses
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
What is the bonus system?
The bonus system is a complex of measures that forms the motivation and loyalty of personnel, contributing to the improvement of productivity and development of the organization. It consists of bonuses and allowances, the amounts of which change depending on such factors as achievements, length of service, qualifications, percentage of plan fulfillment, compliance with project deadlines, and others.
What is the bonus system?
Determining the criteria for calculating bonuses or additional allowances is one of the key stages in creating a bonus system. They can be as follows:
achievement or exceeding of planned targets;
compliance with internal labor regulations;
high-quality performance of duties;
reduction of company costs;
absence of internal disciplinary violations;
improving the efficiency of individual departments.
The structure of material incentives should be developed taking into account the individual characteristics of the organization. It is important to consider current labor indicators, the level of staff turnover, and most importantly, the financial position of the organization both at the moment and in the future. Otherwise, changes in the bonus system may cause employee discontent and negatively affect the working atmosphere.
Which one to choose? There are many different schemes for implementing a bonus system. Some are based on KPI, others are aimed at increasing the loyalty of the company's employees (the thirteenth salary), and others use bonus payments.
The article explains:
What is the bonus system?
How bonus ig data package systems help businesses
Basic schemes of bonus systems
Reflection of bonus issuance in documents
Mandatory payments when calculating the bonus
Indicators in the bonus system
Bonus indicators for different departments
Implementation of KPI in the bonus system
Stages of developing a bonus system
5 Mistakes in the Development and Implementation of a Bonus System
Bonuses for financial problems in the company
Frequently asked questions about employee bonuses
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
What is the bonus system?
The bonus system is a complex of measures that forms the motivation and loyalty of personnel, contributing to the improvement of productivity and development of the organization. It consists of bonuses and allowances, the amounts of which change depending on such factors as achievements, length of service, qualifications, percentage of plan fulfillment, compliance with project deadlines, and others.
What is the bonus system?
Determining the criteria for calculating bonuses or additional allowances is one of the key stages in creating a bonus system. They can be as follows:
achievement or exceeding of planned targets;
compliance with internal labor regulations;
high-quality performance of duties;
reduction of company costs;
absence of internal disciplinary violations;
improving the efficiency of individual departments.
The structure of material incentives should be developed taking into account the individual characteristics of the organization. It is important to consider current labor indicators, the level of staff turnover, and most importantly, the financial position of the organization both at the moment and in the future. Otherwise, changes in the bonus system may cause employee discontent and negatively affect the working atmosphere.