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Company Bonus Structure

Company Bonus Structure

Posted: 26th July 2021

Viewing 4 posts - 1 through 4 (of 4 total)
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  • #13451

    Hi all, I am currently (with the help of Karen and Lucy’s wealth of resources) developing a Performance Management approach within our business.

    Part of this project is to also look at making our bonus scheme a little more transparent. At present our bonuses are decided by the MD and nobody really has an understanding as to why or how they achieve it.

    I know, I know we don’t like bonuses here at Disrupted HR hehe 🙂 and I would love to scrap them altogether and work on paying a fair wage however that’s one for another day.

    So working within the parameters I have in front of me, I need to develop something simple that provides a bit more transparency and structure but also an approach which won’t derail the PM element I would like to introduce; keeping things lite, employee led and all based around great conversations not forms and once a year tick box appraisals.

    If anyone works for a Company who still pays personal and company bonuses, would anybody be happy to share with me the approach?

    Thanks all in advance!

    P.S Love this membership – the value I’ve got from these last few months already is off the scale!


    Hi Hannah!  We’ve been through a similar pain to you and on the journey to the utopia of bonuses becoming a celebration of Company success – rather than recognising individual performance – we’ve had a couple of different iterations.

    We historically used objective scores to denote what percentage of salary would be awarded to an employee, but this is obviously easy to gameify, and half the time we had the situation where employees didn’t have any objectives – let alone objective scores!

    Last year we did a flat percentage for employees, but still used an objective-based calculation for the line manager group in trying to make them accountable to each other and also place a higher importance on line management skills than we had previously.

    This year we’re looking at keeping the line managers as a separate group, but looking at how we can devolve the decision further down the management chain.  Still a work in process so this might not be how it pans out, but hope these ideas help!

    More than happy to discuss further!


    Hi Lucia,

    Thanks so much for sharing your insights. That sounds really interesting!

    I’d be really interested to understand your objective based calculations for managers. If you have time, would be great to connect and set up a quick chat?



    Absolutely – please feel free to drop me an email at !

Viewing 4 posts - 1 through 4 (of 4 total)
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