Our Bonus Scheme is made up of two parts – a Corporate element and a Personal Element. We would be interested to hear from others who have a personal element to their bonus scheme how this is calculated. For example, is it tied to a formal talent/performance score? If not, how is element awarded? How is bonus managed for those that are underperforming (do they still receive a bonus etc)? Happy to share our approach in return,
Hi, we have a bonus multiplier that is applied to the individual’s bonus payout and tied to their performance rating. This assumes overall corporate performance hits a minimum threshold level. For those who are underperforming a payout is still made but on a reduced basis. These modifiers at both end of the performance range apply to all levels excluding Executive.
Hi Ruth we have a personal element for middle and senior levels. This is tied to a formal performance management process. For significant personal underperformance there is no bonus payment, regardless of corporate performance. We used to apply this approach to all staff levels, but now for entry/less senior roles the bonus is related to corporate performance only.