Bonus is not a Way of Expressing Excitement
Keep your people Motivated and Excited
Contrary to the common notion that majority of people are driven by the desire for money and they work because they have no other alternative, the real motivation draws from various other factors rooted deeper than such things. Surrounding culture in the workplace, fair treatment, unbiased and trusting attitude are certain crucial driving forces.
Factors that Influence Motivation and Participation
Core values of the organization, communication, interpersonal relationships, and standards are what govern the employees’ behavior and contribution. The way the organization relates with the outside world and the objectives of the organization play a vital role too. Apart from these fundamental elements, proper disbursement of compensation proves crucial in getting the right kind of response from the people in the organization.
Better Bonus and Incentives Structure, Satisfaction and Engagement
Bonuses are certainly a fact of business life. The bonus structure has to be designed and implemented in such a way as to not only satisfy and fulfill employees’ needs but also justifiable by the management. It has to be on par with industry standards and morally satiating to the employees. Not for just keeping layoffs at bay but with real intention of honoring the participation and engagement of the employees should the bonus payment process be handled. It must rather be an acknowledgement of the employees’ role in actual progress of the business than a monetary stimulant for propelling enthusiasm.
Achieving the Original Purpose through Appropriately Formulated Bonus Payment
Companies that follow moral standards and social responsibility concerns properly recognize the true value of employees and their active participation in the business processes. The actual purpose behind bonus payment is encouraging certain virtues—particular behaviors from different sections of the organization. Similar to other strong business decision, bonus payment needs to be based on factors such as business environment, objectives, and compensation policies. Not for just making an excitement around the workplace, bonus has to be disbursed with the strong view of gaining employee engagement. It must be aimed at providing a sense of belonging and proprietorship to them, thus leveraging active participation.
Planning an Effective Bonus Structure
Consideration must be given to the following factors while arriving at the perfect bonus plan that best suits your business:
- Competitive Compensation Package: Pay packages must be reviewed and compared with industry—bonus payment helps retaining your experienced people
- Turnover rate: Valuable employees – experts moving out toward better paying opportunities and seniors seeking greener pastures need to be checked
- Motivation and Morale Carry Weight: When combined with periodical performance reviews, bonus payment must be effective in motivating people toward striving for meeting and exceeding expectations
""It is the responsibility of the management to establish objective measures over which bonus payment decisions can be based on. Managers and supervisors handling these affairs must move among the people and develop skills required to quench the thirst of each person according to his or her nature. Every case will be unique. Hence, consideration must be given for performing the process fairly, in order to fulfill the specific needs of individuals."