Last updated on November 8th, 2018 at 02:28 pm
Small Business Employee Bonus Plan (Word Format)
If you are small business and you are looking to motivate your teams using objectives and a financial bonus then this is the bonus scheme to use. It is very easy to implement and follow and comes with plenty of safeguards. It will help you to reward you staff for excellent performance and meeting individual and team objectives and also helping the business to meet overall company objectives.
- Contains simple bonus system suited to small business
- Includes individual, team and company goals
- User-friendly with a intuitive bonus formula
- Drives and focuses employees toward business goals
- Increase productivity and revenue
- Boosts team work
HOW THE EMPLOYEE BONUS PLAN WORKS.
This is a bonus plan system document and it includes everything you need to develop and adminster a bonus plan for your small business. It is a 5 page word document, containing, 1505 words.
Page 2: Purpose and Definitions
Page 3: Participation level and eligibility criteria
Page 4: Company Performance Factor and Individual Performance Factor Model explained.
Page 5: Team Performance Factor Model explained and Award Determination
Page 6: Administration and Reservations to Management
The purpose of the Employee Bonus Plan is to focus the attention and efforts of employees on financial and operational goals and to share the benefits of increased productivity, cost reduction, team work, and quality improvement with employees as a reward for their contributions to the achievement of these goals.
The premise of this bonus plan is simple. Employees are given a bonus pot, which is a % of their salary. This bonus pot is combined with a Company Performance Factor (CPF), Individual Performance Factor (IPF), and Team Performance Factor (TPF) to determine the actual bonus award that will be paid, according to the formula shown below.
Base Salary X Bonus Target X CPF X IPF X TPF = Bonus
NOTE: The following examples are for illustration purposes only.
Example 1: A participant earning a base salary of £50,000 per year, bonus target of 10% of base, Financial Factor of 110% of goal, individual performance of Commendable, team factor of 1.1:
£50,000 X 10% X 1.1 X 1.25 X 1.1 = £7,562.50