How to Structure Bonus Plans

[@johnmadec3199]

this is really useful

[@tomasbitocchi8417]

Hi! Great advice, but I'd like to know how often the bonuses should be given. It is better annualy, every month or how? Thanks!

[@CEOProject]

Tomas - I think it depends on the level of the employee and their ability to defer gratification. Hourly workers probably need to be bonused more frequently, perhaps monthly. Salary and professional employees could be bonused quarterly or half yearly. Executives, yearly. The issue is if there is a good first half, and a poor second half, a firm does not want to overpay bonuses and they will not request the money back from employees. To counter this, most firms will create the pool as I indicated and only pay a portion of the bonus across the year and pay-out what is left at the end of the year.

[@tomasbitocchi8417]

@@CEOProject Thank you very much!

[@ilovetech8341]

what a scam. My bonus is tied directly to how much I make and save the company. Not some percentage of salary or bonus pool.

[@fromtheinvisibledeskofmiked]

So basically you get $ 10 to$ 20 a week for working like a dog 🐶 😅🤣😂🤣😅😅