Individual and broad bonus schemes
Another method of separating and categorising bonus schemes is based on who they focus on within the employee base. These are split into four distinct types:
- l Individual;
- l Team;
- l Business Unit; and
- l Hybrid, e.g. individual plus business unit.
Individual bonus schemes focus on specific employees and their personal goals. These systems tend to be used commonly for sales staff, where the number of sales made is tracked, and each individual employee is given a bonus depending on their performance.
Team bonus schemes work best in businesses where the labour force is split into groups with distinct goals. For example, a call centre might host a complaints team, a sales team and a customer service team; each team may be given flat bonuses based on the number of calls they answer, or the number of issues they resolve.
Business unit bonus schemes centre around broader business goals and reward the entire company for an organisation’s success in a specific field. This bonus scheme could be dependent on anything from revenue figures to customer service reviews, it all depends on what you would like your business to focus on.
Schemes can also be either single-factor or multi-factor. Single factor schemes revolve around a single goal, for example, revenue, profit or sales; on the flip side, multi-factor schemes are broader in their goal selection, combining multiple targets to try and improve a variety of factors across the business.
The most effective choice of bonus scheme for your organisation will differ depending on your sector, size, finances and more, so be sure to take your time in deciding what will work best for you.