Santa or Scrooge, how will your employees feel about you at the end of the year. Annual bonuses are the best way to show your appreciation for those individuals who have gone above and beyond throughout the year. Recent studies show that the bonus plan should always be merit based. It is the best way to validate an employee’s hard work, and is also leverage for the employer to use an incentive to motivate those who may not be performing to standard. The expectation that every employee will receive equal bonus based on position is outdated, and simply provides no benefit to the employer.
The most effective way to validate your bonus plan is through an annual review. Employers should have open communication with their employees throughout the year so their end of year compensation will come as no surprise. In our industry, an employee’s performance will be based mostly on output and work quality. This can be a little more challenging to quantify. By effectively communicating with your staff, you can reference examples as to the reasons why the employee is receiving the maximum or minimum bonus. In an ideal situation, supervisors should be able to earn 10 to 15 percent of their annual salary, while lower level employees should earn between 5 to 10 percent. By following these guidelines, you can create an environment of hard working individuals who feel appreciated and therefore are more willing to perform at the high standards we expect from our employees.
Our October membership meeting included the second part of our “Survive and Thrive” series. I would like to thank Curt Picard and Doug Matz for telling their stories and sharing their experiences. This type of programing has been well received by our membership and I’m asking other members to share their stories as we continue this series in the upcoming year.
Please join us at our Holiday Cocktail Party at the Chalet Restaurant in Roslyn on December 1st.
As we begin our holiday season, please remember to bring an unwrapped present as we continue our annual “Toys for Tots” tradition. I look forward to seeing you there!
— Marc