BONUSES
CIPD issues guidance on bonuses and cash incentives
The Chartered Institute of Personnel and Development has published an updated factsheet on bonuses and cash incentives.
The factsheet gives introductory guidance. It:
defines and sets out the rationale for bonuses/cash incentives
describes different types of bonuses and incentives
examines the coverage, trends and levels of bonus payments among employers
looks at key issues in designing and managing schemes effectively
sets out a summary of legal aspects
includes the CIPD viewpoint.
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CIPD comment
“The use of bonuses and cash incentives, when carefully designed and tailored to align with an organisation’s own culture and needs, can help to create and sustain high performing workplaces. To be effective, bonus and incentive plans need to operate as part of an integrated reward strategy closely linked to business objectives including long-term goals and corporate governance standards. The success of such schemes will depend on how effectively performance is defined, managed and ascribed, requiring effective communication and engagement on the part of both employees and line managers.”
Want to know more?
Title: Factsheet: Bonuses and cash incentives, Chartered Institute of Personnel and Development, revised May 2009.
Availability: To download the factsheet, free of charge, go to www.cipd.co.uk/onlineinfodocuments/factsheets.htm.
The Chartered Institute of Personnel and Development (CIPD) has more than 130,000 members and is the “leading professional institute for those involved in the management and development of people”. To find out more visit www.cipd.co.uk.