In order to be effective, a bonus plan must:
- be related to the work performed,
- be consistent with the company goals,
- be seen as attainable by the participants,
- pay out a meaningful amount,
- pay for improved performance.
Effective means the participants will be:
- more knowledgeable about their jobs,
- more knowledgeable about the company goals and objectives,
- inclined to work in concert with other team members.
The results will be:
- a happier, more effective team,
- reduced team member turnover,
- improved incomes for the team members and the company.
How’s your bonus plan?