Is Your Annual Bonus Guaranteed?

Compensation Cafe

When worried organizations consider methods to get their arms around (control) high payroll expenses, they typically turn a blind eye to the variable pay component, to annual bonuses or incentives. Just be careful not to over-compensate the incentive payments to make up any loss.

Employee Bonuses 101

Namely

There is a lot to be aware of when it comes to bonuses. Small HR teams have a lot on their plate already, so bonus season can seem even more time consuming and chaotic. To help, we’ve compiled four essential elements to consider when setting up a bonus system. Timing Bonus cadence can take a variety of forms. There have been cases made for annual, semi-annual , holiday, and even spot bonuses. What do you want bonuses to achieve? Payroll

What’s a Signing Bonus? Should You Offer One?

FingerCheck

If you’re looking to attract new talent, a signing bonus is one way to sweeten the compensation package you offer to highly qualified candidates. Unlike traditional benefits like healthcare insurance, paid sick days, and vacation/paid time off, a signing bonus is a one-time benefit paid at the start of employment with the company. . The typical signing bonus is given at a rate of between 5-10% of the base salary and is taxed at 25%.

Beware of Bonus Pitfalls: Overtime and Nonexempt Employees

HR Daily Advisor

I received a call recently from an employer that wanted to know if it could exclude a newly created job category from an annual bonus program. The employer told me it hadn’t thought about doing so because this bonus was paid only once, on an annual basis.

HR and the Holidays, Part Two: Holiday Bonuses

FingerCheck

Holiday bonuses can be tricky. While not every employee expects a holiday bonus, depending on the corporate culture, the practice may presumably be a standard part of the job. According to one recent poll, two thirds of HR and Hiring Managers say they plan to offer holiday bonuses.

Are Holiday Bonuses Right for Your Company?

HR Payroll Systems

The holiday bonus is something that has made good fodder for holiday comedies for years, but many companies have lately altered their views on the age-old practice. With this in mind, are holiday bonuses right for your company? Holiday Bonus Complications. Merit Based Bonuses.

1% of Payroll: The Magic Number For Social Recognition Investment

WorkHuman

Finding 3 in the 2016 SHRM/Globoforce Employee Recognition Survey shows that the sweet spot for values-based rewards and recognition investment is 1% or more of payroll. The annual pay raise or bonus for example, only gives a lift in employee engagement for about one month.

When Size Matters -- Basics for Early Stage and Small Companies

Compensation Cafe

Pretty quickly, you get your payroll administration under control and maybe engage the services of a Professional Employer Organization (PEO). Get credit for your incentives. Many CEOs of small companies don't like to talk about incentives since they can't guarantee a yearly payout.

Cafe Classic: Put Pay in its Place

Compensation Cafe

For example, it has been well known throughout history that cash prizes cannot inspire creativity and everyone knows that poorly designed or morally hazardous incentive systems can distract workers from proper performance: but solid pay is a vital first step.

Is Your Annual Incentive Pay Plan the Right Fit for Your Business?

Insperity

You need to develop an effective incentive plan. Overall, the most common strategy is an annual incentive pay plan. But is an annual incentive pay plan really the best way to motivate employees? How an annual incentive pay plan works.

Compensation Cafe: Keeping Investments in People Top of Mind

RecognizeThis!

In today’s post on Compensation Cafe , I discuss what these trends mean for the full range of investments that companies make in their people- spanning salary, incentives, and benefits- and how difficult it can be to keep those things top of mind. By Derek Irvine. Recognize This! –

Cafe Classic: Put Pay in its Place

Compensation Cafe

For example, it has been well known throughout history that cash prizes cannot inspire creativity and everyone knows that poorly designed or morally hazardous incentive systems can distract workers from proper performance: but solid pay is a vital first step.

Is Your Annual Incentive Pay Plan the Right Fit For Your Business?

Insperity

You need to develop an effective incentive plan. Overall, the most common strategy is an annual incentive pay plan. But is an annual incentive pay plan really the best way to motivate employees? How an annual incentive pay plan works. With an annual incentive pay plan, employees earn a payout, often expressed in terms of percentage of salary, when they achieve performance-related goals. An annual incentive pay plan should: Reward high performance.

Cafe Classic: ESPPs are a Dessert Topping and a Floor Wax

Compensation Cafe

They work well when managed by payroll, human resources or a dedicated stock administrator. How many incentive programs allow participants to directly choose their level of engagement?

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A Day in the Life of a Payroll Professional: Cheri Greene

Namely

In her new role, Cheri works closely with the HR department to process the company’s payroll. The first thing I do is check my three email inboxes—personal, payroll, and accounts payable. I often get emails from employees with payroll questions. Time to process payroll!

Equity for the Gig Economy?

Compensation Cafe

Companies who are not paying payroll taxes and other employee benefits may have greater budgets to offer additional equity. Incentives/Bonuses Regulations & Public Policy Stock/Equity Compensation Total Rewards dan walter equity futuresense gig uber

A Word to the Wise, Once Again!

Compensation Cafe

It May Have Become a Bonus " We all know about this trend, we've helped to create it. Especially informative is the Aon Hewitt visual about the share of companies' payrolls devoted to bonuses vs. the share devoted to salary increases. "If

Growing a Healthy Compensation Program -- The Turning Point

Compensation Cafe

Bonus: Healthy Gadgets' business model has shifted from "let's get going" to "grow, grow, grow." Healthy Gadgets will demonstrate that they are serious about success in the marketplace by connecting the bonus plan design to these goals.

3 Innovative Compensation Ideas Ready for Prime Time

Compensation Cafe

What if we put a portion of payroll into everyone’s hands to apportion to those they see doing great work in a system with oversight and governance? Compensation Philosophy Incentives/Bonuses Pay for Performance Recognition

Not All Rewards Jingle

Compensation Cafe

This total rewards generalist is convinced that we need a deeper understanding of the unique powers of one of the most neglected incentive methods — recognition. More than money counts. There are many motivational devices besides pay.

What Do You Do?

Compensation Cafe

Maybe you had to explain it for the umpteenth time to a family member who spent the past year sending you articles about payroll. They may need help on problems with salaries, bonuses or a certain benefit.

The Great Christmas Giveaway

Compensation Cafe

So how do we know that the incentive plans continue to run effectively, aren't wasting money, aren't creating inequities and aren't fostering employee discontent? Incentive Review Paperwork : You have forms meant to assess performance for your annual management incentive plan (or others).

Outing Outsourcing and the Gig Economy

Compensation Cafe

The accelerating trend towards reducing payrolls by replacing employees with outside contractors threatens our livelihoods. . No complicated benefit selections, no individualized payroll deductions.

Getting Ready for the DOL's New Overtime Rule

Compensation Cafe

Explaining to your employees that the exempt/non-exempt designation is only for payroll purposes (a suggestion in the article) isn't going to smooth any feelings.

Where Have All the Raises Gone?

Compensation Cafe

Last month The New York Times ran an article bemoaning the loss of pay raises in favor of one-time bonuses and non-monetary rewards. The share of payroll budgets devoted to straight salary increases sank to a low of 1.8 percent of payrolls.

If Money Were the Solution.

Compensation Cafe

With unlimited budgets, HR could improve every enterprise with payroll adjustments alone. Companies don’t find that a higher payroll burden per employee makes for a fatter bottom line. If money alone could solve all problems, every issue could be reduced to an expense item.

Merit Deserves More than Mere Money

Compensation Cafe

This is an excellent time to expand your thinking beyond the limited boundaries of payroll budgets. It does seem impossible to achieve a credible pay for performance (merit) system with lean payroll budgets constrained by low increase authorizations.

The Misallocation Dilemma

Compensation Cafe

Government routinely cost-shifts social benefit expenses into employer payroll burden. More and more money to fewer and fewer people seems to be the trend today.

FLSA Chaos, Exploiting Exempts and Living Laboratories

Compensation Cafe

That nice pay bump, if supported by the incoming President, will be expensive for employers suddenly facing major increases in their fixed payroll costs. Base Salaries Incentives/Bonuses Nonprofit Compensation Performance Management Total Rewards

Ready, Set, Go, Go, Go!!!

Compensation Cafe

Or, at least pretty much leave it at a cool handshake and a new payroll source for their founding employees. In a start up, a paycheck/incentive talks to the employee about the future as much as the present. I'm working with a small company with huge potential for growth.

What is compensation? How to create a compensation plan

Sage HRMS

In the workplace, a broader compensation definition includes the whole of what is earned by employees—that is salary or wages in addition to the commission, bonuses, and any incentives or perks that come with the employee’s […]. Money Matters Paying People PayrollWhat is compensation? Compensation typically refers to the monetary payment awarded to an individual in exchange for their services.

Lost at Sea or. No Safe Harbor

Compensation Cafe

It includes such data as global employee databases, payroll information from external providers, and other transactions where employee data is transferred across the “pond”. In many companies Compensation has responsibility for overseas payroll for local nationals as well as employee benefits. 2)Identify all the vendors used survey providers, insurance companies, brokers, payroll providers, HR outsourcing firms, benefit administration vendors, etc.

New Overtime Rule: Minimum Salary Raised to $35,568

Stratus

Employers can use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of that amount.

Shrinking the Student Loan Debt: Let’s Start at Work

HR Daily Advisor

Biweekly payroll deduction: If employers want to help employees pay back their student loans in a more direct way, setting up a biweekly payroll deduction that goes toward their student loan payments is an effective way to do so. Benefits employees incentives student loans workforce

Should Your Company Offer Profit Sharing?

HR Payroll Systems

It’s common for companies to offer year-end bonuses to their employees for this reason. However, offering bonuses can become problematic during an economic downturn. If your company cannot offer the usual bonus to employees, they may feel under-valued even if they’ve been working hard.

Why Must Employers Teach Employees About Total Rewards?

NGA Human Resources

It groups together the total value of base pay, bonuses and equity with any benefits (monetary and other) plus and additional employee perks. Anything above can cost more in administrating than any results the incentives can deliver. . Featured Payrollby Anita Lettink.

Who Owns Retention? The REAL Employee Turnover Problem

Achievers

At many companies, when turnover rises executives point to HR to fix it – whose plate is already overflowing with terminations, payroll, benefits management, and back-fill recruiting. What’s the biggest problem when it comes to employee turnover? No one owns retention!