Bonuses

Vandee

Private non-profit corporation considering awarding bonuses. Does anyone have a policy on bonuses or the legal aspects, i.e. award to only specific groups such as Department Directors or First-line managers?

Gillian

There really isn't anything to worry about other than what would be done regarding good compensation practice. It is OK to specify the levels which will be eligible for a bonus as long as you are consistent. The standards upon which one will either receive a bonus or won't should also be consistent, so that people know what the rules are. You could give a discretionary bonus where employees might get differing amounts but then you have to watch out for the decision making process to make sure that no discriminatory decisions are made or that you don't create morale problems by having a system that is discretionary.