Description:
Design a structured annual bonus and profit-sharing program to reward performance and align with company financials.
Duration: 6-10 weeks
Major Activities:
- Define performance metrics and eligibility criteria
- Conduct financial impact analysis and budget planning
- Develop bonus calculation methodology (fixed, variable, profit-sharing)
- Align payout schedules with financial cycles and compliance requirements
- Communicate bonus structures to employees and stakeholders
- Monitor effectiveness and adjust bonus schemes periodically
Deliverables:
- Annual bonus and profit-sharing framework
- Bonus eligibility and calculation guidelines
- Financial impact assessment and budget plan
- Communication and employee engagement materials
- Monitoring and adjustment framework
Project Tips:
✅ DO:
- Align bonus structures with company performance and financial health.
- Ensure transparency in eligibility and payout calculations.
- Use incentives to drive desired employee behaviors.
❌ DON’T:
- Overpromise bonuses that are financially unsustainable.
- Set vague or unrealistic performance metrics.
- Delay or miscommunicate payouts—this reduces trust.