Ways to Determine Employee Bonuses
Some companies offer yearend bonuses. It’s an opportunity to show to employees that they’re valued. It’s also a way to help employees stay afloat. Those who live from paycheck to paycheck need this extra cash. Besides, they deserve it because they work hard. The only issue is that you might not be fair in giving bonuses. It could lead to issues within the team. You might not have bad intentions, but your decisions will be perceived in a negative light. Setting clear standards in handing out bonuses is crucial.
Always base it on tangible performance
Go back to the job description of your employees. Make sure they do what’s required of them. If they meet their goals or exceed expectations, they get an amount they deserve. The standards should also be clear from the start. Sure, bonuses are a prerogative of the company, but they should still be given in a fair manner.
Peer evaluations should be considered
You want your employees to maintain a good relationship with one another. They don’t have to be friends, but they should at least maintain a good professional relationship. Peer evaluations can help you determine the bonuses too. Employees who have a generally poor evaluation score could have a lower bonus. It tells that person to work harder in having a wonderful working relationship with the rest. Of course, the standards should be clear. Otherwise, those who are real friends with each other will end up giving high scores.
Suggestions matter too
You want your employees to voice out their opinions. You need them to be more active during brainstorming. They can’t sit on one side and allow others to dictate the direction of the company. Besides, excellent ideas might come from employees who rarely speak up. If you tell them that suggestions matter, and you will consider them in offering bonuses, they will extract creative juices from their brains. They become more active. It’s also a way of asking the new employees to step up and not be shy to say their thoughts. They might hesitate since they’re new to the team, but they shouldn’t.
Self-evaluation should be included too
You also want to test your employees and how they view themselves as a part of the team. Self-evaluations are crucial. It doesn’t mean you will immediately give high bonuses to those who gave themselves a high score. Of course, those who need that extra cash will most likely rate themselves higher. You can have private interviews too to allow your employees to explain their personal ratings.
By combining these standards, you become fairer in giving bonuses. No one would accuse you of favoritism. You let the job performance matter most. It inspires others to work harder too. There’s always another year to try hard in earning a more substantial bonus.
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