BONUS SCHEMES
New IDS study casts spotlight on bonuses
Many bonus schemes now measure a wide array of performance factors – such as output, quality and customer service – and assess performance at various different levels of the business – including individual, team and department. But as schemes become more complex, it’s vital to ensure the plan’s aims are clearly communicated. These are some of the main conclusions to emerge from a new guide by Incomes Data Services.
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IDS also recommends that employers should not over-engineer their bonus schemes or obscure the link between employee performance and reward. “The more significant the bonus, the more important it is that employees understand how they can influence it,” IDS says.
What you will find in this report
The 33-page report is divided into three main sections:
Overview - considers different ways of measuring performance, including single- and multi-level schemes, and the factors commonly employed.
Design and implementation - looks at the design and implementation of bonus schemes, including measurement levels, factors, targets, payments and employee communications.
Company practice - details the bonus schemes in place at 23 named organisations.
Want to know more?
Title: “Bonus schemes”, IDS HR Studies 911, February 2010.
Availability: IDS HR Studies is a fortnightly journal and online service analysing employers' HR policies, procedures and practices. For subscription enquires contact customer services, tel: 0845 600 9355. To subscribe online click here.
Incomes Data Services is the “leading UK information and research service on employment issues, providing a range of publications for employers, trade unions, government departments and other agencies”. For more details visit www.incomesdata.co.uk.