What's your Admin Bonus Structure?
DeniseR
22 Posts
Hello Everyone,
I am looking for feedback. We are a sales company in Northern NJ and our Corporate offices which houses our administrative personnel. Currently our bonus structure is 10% of their annual salary paid out twice a year. However how much you receive from that potential is based on the accomplishment of your assigned goals every 6 months. I've heard that other companies treat bonuses a little different. For example: employees just receive a flat dollar amount at Christmas time, or they simply offer administrative employees a base salary with no bonus potential. Can you let me know your specific structure so that I can use it as a basis for comparison? :-?
I appreciate your feedback!
Denise
I am looking for feedback. We are a sales company in Northern NJ and our Corporate offices which houses our administrative personnel. Currently our bonus structure is 10% of their annual salary paid out twice a year. However how much you receive from that potential is based on the accomplishment of your assigned goals every 6 months. I've heard that other companies treat bonuses a little different. For example: employees just receive a flat dollar amount at Christmas time, or they simply offer administrative employees a base salary with no bonus potential. Can you let me know your specific structure so that I can use it as a basis for comparison? :-?
I appreciate your feedback!
Denise
Comments
However, other companies I have worked with all had annual bonuses. No specific formulas, they were all discretionary, usually by the CEO, who looked at a combination of how good the year was, how well each EE performed, and how much each EE had to do with the success of the year.
The key was the dicretionary aspect of the bonus calcualtion.
Our admin bonuses are on a quaterly basis, and are tied to the company's operating ratio. Every employee has a base amount for bonus which is set based on criteria like time with the company, annual salary, etc. Then if the operating ratio for the quarter is 95-94.1% the employee will receive the base amount. If the operating ratio is 94-93.1% the employee will receive double the base amount, etc.
For example, if the employee's base amount is $750, and the operating ratio for the 4th quarter is 93.7% their 4th quarter bonus would be $1500.
It's a little complicated, but this way it ties the bonus to the company's performance.
We've been using it for a year now, and so far have not failed to make at least the 95% required for the base amount.