Many of today's job seekers are mulling over positions that are based on much more than just salary. As the economy rebounds and more companies are beginning to add new staff members, those in the market for a new position are making decisions based on company fit, the robustness of the employee benefits program and other perks, including bonuses. This is especially true for those who are paid a fixed salary and who aren't allowed to be compensated for overtime.
According to The Wall Street Journal, citing research conducted by Aon Hewitt, many company payrolls are now including bonuses being awarded to staff based on how well they perform their job duties. Dubbed variable pay, the newspaper reported that 90 percent of the 1,064 companies polled by Aon Hewitt stated that they offer this kind of compensation program. In 2005 that figure was 78 percent.
On average, companies are now devoting 12.7 percent of their payrolls this year to variable pay initiatives. This is done primarily to avoid incremental salary increases while giving organizations more flexibility regarding employee compensation. This strategy is also becoming one that motivates workers to perform at a higher level.
Bonuses bring the best out of employees
There are a lot of motivating factors that can cause an individual to go above and beyond his or her work duties. Receiving additional perks from their employer is one example. Creating a bonus program based on performance isn't easy. However, a recent article from the Atlanta Business Chronicle listed a number of steps to put a system in place that companies can benefit from with respect to the effort being put forth by its staff members.
The newspaper suggests offering these awards frequently as a way to keep workers engaged. This gives them something to strive for and increases the likelihood that they will give their all consistently. Another helpful tip is to keep the criteria fair while also implementing a level of transparency. If performance-based, employees should always know where they stand individually and in relationship to their colleagues.
Lastly, in addition to financial compensation, organizations should always recognized high-achieving staff for a job well done. This pat on the back is the perfect way to ensure that they will work hard at all times, while motivating and inspiring others to perform so that their achievements can be recognized also.