Setting up a bonus structure
Discussion
I'm discussing a new bonus structure with my company and have little in the way of knowledge about how to do this. I work in technology consulting in the project/programme management field.
Has anyone any experience of having set up a bonus scheme from scratch and what objectives/targets would you apply?
Has anyone any experience of having set up a bonus scheme from scratch and what objectives/targets would you apply?
This is an extremely complex area that has tax, legal, HR and potentially company sec' issues for you.
You need to understand first what your meduim term aims of this are, what do you want this to incentivise your staff to do, sell, reduce attrition rates, work quality, link it to annual reviews etc. Or do you want more long term and think about a share of the business, etc.
First think hard what you want to get out of them, then we can help as to how to do it.
I have to warn you that something like this unless fairly simple is something that potentially needs to go to a GOOD accountant. Some may still tell you rubbish as they will get you compliant for tax, but not understand and suggest on the business commercial aspect.
You need to understand first what your meduim term aims of this are, what do you want this to incentivise your staff to do, sell, reduce attrition rates, work quality, link it to annual reviews etc. Or do you want more long term and think about a share of the business, etc.
First think hard what you want to get out of them, then we can help as to how to do it.
I have to warn you that something like this unless fairly simple is something that potentially needs to go to a GOOD accountant. Some may still tell you rubbish as they will get you compliant for tax, but not understand and suggest on the business commercial aspect.
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