Incentivise the behaviours you want to encourage
Why use a bonus scheme in your organisation?
Employee bonus schemes are used by many organisations as part of a structured reward programme. Bonus payments are effective for the company because they help to flex employment costs – rewarding individual employees when the business is doing well, without permanently increasing the company’s annual pay commitments. Having bonus pay also improves employee engagement and communicates and incentivises the things that are important to the organisation’s success.
An effective bonus scheme helps employees feel recognised, increasing their motivation at work and, in turn, their individual performance.
Deciding on your type of bonus scheme
Every organisation is different so it is important to carefully consider what your bonus scheme needs to achieve. Will it be a formulaic or discretionary bonus scheme (or a combination of the two)? Do you want the scheme to be an incentive for employees to reach individual performance targets, a reward system for teams who achieve defined goals, or a profit share to reflect company-wide success?
Just as a well-designed bonus scheme can help your employees and organisation prosper, the wrong design can potentially damage employee wellbeing and morale, having a negative effect on your workforce and potentially damaging your employer brand.
Our approach to bonus scheme design
We design bonus schemes that are easy to understand, simple to administer and drive favourable employee behaviours that support your organisation’s growth and success. To do this, we will first take time to understand the makeup of your organisation, its culture and values and the drivers for success. This enables us to design a scheme that both complements and works with these characteristics, in order to have a positive impact on the business as well as employee engagement and retention.
Once we fully understand the organisation and its goals, we will then design a bespoke bonus plan which provides the employee incentives, pay bonuses or profit sharing plan which best fits your organisational setting.
When people are offered a financial opportunity to share in the success of the organisation it can increase employee engagement, boost performance, and ultimately improve a company’s bottom line. It opens up an effective financial incentive to all employees – not just senior managers – which can increase loyalty and encourage a sense of ownership.
Typically, a scheme will be designed so that all employees share equally in the company profits as a percentage of their base pay. Like any reward scheme, designing a profit sharing plan requires careful thought and planning. We can help you design a plan that engages and rewards your employees and supports your organisation’s immediate and long-term objectives.
Personal service from a specialist team
Gallagher has delivered employee reward and recognition programmes for all kinds of organisations, and to meet many different objectives. Our consultants will work closely with you to fully understand your current employee engagement strategy and employee reward programmes, before designing a bonus scheme or profit sharing plan that is tailored to your organisation and its goals.
Bonus Scheme & Profit Share Plan Design
- Bespoke incentive plan design for your organisation
- Understanding of what makes your organisation unique
- Bonus scheme design that communicates what is important
- Profit sharing schemes that say ‘we are all in this together’