Bonus in corporate company
This query is : Resolved
Ashwin Bharani
(Querist)
16 December 2013
Dear Sir,
I need required Bonus strategy in corporate business.
Thanks
16 December 2013
BONUS MINIMUM PAYABLE TOTAL PAID SALARY * 8.33% FOR 12 MONTHS
i.e :- 1000 RS. PER MONTH YOU ARE PAYING AS SALARY
1000*12*8.33/100 = 999.6 payable as bonus
i.e :- 1000 RS. PER MONTH YOU ARE PAYING AS SALARY
1000*12*8.33/100 = 999.6 payable as bonus
Nikhil Kaushik
(Expert)
16 December 2013
Dear Ashwin,
The strategy would vary on the basis of goals the corporate wishes to achieve:
You need to answer questions like:
1. Is it a retention strategy?
2. what should be the appropriate slabs of bonus for differential performances.
3. Is it targeted at the best performing or the average performances? means are you trying to retain the average employee or the best performing ones? Is cash bonus the only incentive for retention etc?
There can be many such questions.
Regardless there are few basics of any bonus strategy:
1. Stick to cash in hand - ie give the bonus in cash form only
2. landmarks should be clearly defined
3. payment should be in time. Don't delay
4. Avoid punishment: as much as possible avoid inbuilt penalties for non-achievement.
The strategy would vary on the basis of goals the corporate wishes to achieve:
You need to answer questions like:
1. Is it a retention strategy?
2. what should be the appropriate slabs of bonus for differential performances.
3. Is it targeted at the best performing or the average performances? means are you trying to retain the average employee or the best performing ones? Is cash bonus the only incentive for retention etc?
There can be many such questions.
Regardless there are few basics of any bonus strategy:
1. Stick to cash in hand - ie give the bonus in cash form only
2. landmarks should be clearly defined
3. payment should be in time. Don't delay
4. Avoid punishment: as much as possible avoid inbuilt penalties for non-achievement.
Nikhil Kaushik
(Expert)
16 December 2013
you can refer this link: https://www.ashworthblack.co.uk/bonusschemes.htm
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