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. The thinking was that, if payroll needs to be trimmed, that the “cuts” should come from the merit increase pool, not the year-end lump sum payments. Are the annual bonus/incentives payments in your organization guaranteed (all or in part) in a similar fashion?

6 Types of Bonuses and Perks for Employees

HR Digest

. Bonuses are a way to show appreciation of an employee’s effort or performing a task beyond and above the call of duty. He says structured bonus programs are still very popular with organisations and on average companies are planning to budget 13 per cent of their payroll for bonus expenses.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

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

Are Holiday Bonuses Right for Your Company?

HRIS Payroll Software

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. Holiday bonuses can be tough on companies when profit margins are down and can send the wrong impression if employees are expecting more than they receive. With this in mind, are holiday bonuses right for your company? Holiday Bonus Complications. Merit Based Bonuses. Communication Regarding Bonuses.

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. I then asked a question the employer clearly wasn’t expecting: Are you factoring the annual bonus payments into the overtime wages of nonexempt employees who are eligible for the program? The employer told me it hadn’t thought about doing so because this bonus was paid only once, on an annual basis.

Your Employer Guide to Holiday Bonuses

Zenefits

Here’s something else that a lot of employees look forward to this time of year: holiday bonuses. If you’re an employer, you might be wrestling with your decision to give a holiday bonus or not. How much of a bonus is appropriate? And how, exactly, do you define a holiday bonus? Let’s take a look at some holiday bonus guidelines that might help you with your decision. What Is a Holiday Bonus? A holiday bonus is different from a year-end bonus.

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. Companies that make this level of investment are nearly three times as likely to rate their program as excellent, compared to companies that invest less than 1% of payroll. The annual pay raise or bonus for example, only gives a lift in employee engagement for about one month.

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. Here’s what to keep in mind when deciding how–and whether–to offer a holiday bonus. Scrooge-like ” is how one blogger describes companies which don’t offer monetary bonuses.

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.

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.

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. The thing is, no good incentive plan guarantees a payout, and most large-company employees can remember years when the business couldn't fund an incentive.

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.

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.

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. For the sake of argument, I suspect that salary, incentives, and benefits are not top of mind for the typical employee on a frequent basis. Bonus & Incentives Social Recognition Investments in value top of mind

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

How to develop and refine critical human resource skills

PeopleStrategy

For example; payroll, the administration of health care and other valuable benefits, adherence to specific compliance regulations and timelines, and sensitive tasks like managing employee disputes or sexual harassment complaint. Payroll management.

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.

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 see if there is anything urgent that needs to be prioritized, and if not I start with my payroll inbox. As I go through my email, I’m constantly adding to my “payroll tracker,” which is a spreadsheet that I use to keep track of any important changes pertaining to the upcoming pay cycle.

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? Benefits & Perquisites Compensation Communication Incentives/Bonuses Stock/Equity Compensation Total RewardsEditor's Note: High time we feature Dan Walter's Classic reminder on the wonders of the Employee Stock Purchase Plan. Read on and learn up!

Tools 40

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 Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans. "Employee pay has become a trending topic in media and online."

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? Even 1% of payroll invested into a peer-to-peer social recognition program in this way empowers all employees to essentially “pay” their colleagues for great work by recognizing them for it in small increments throughout the year. 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. Those who could not show pride in their magnificent bonus without being considered arrogant can safely bask in the glory openly bestowed by their appreciative organization. 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. Base Salaries Benefits & Perquisites Executive Compensation Incentives/Bonuses International Compensation Recognition Sales Compensation Stock/Equity Compensation Total Rewards analyst dan walter hr pay performensation What is a compensation professional

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). Let’s Give Away More Incentives : Have a look-see at who is eligible for your incentive programs. Incentives/Bonuses

Outing Outsourcing and the Gig Economy

Compensation Cafe

The accelerating trend towards reducing payrolls by replacing employees with outside contractors threatens our livelihoods. . Employee pay is replaced by a clear cost expense item without any burden rate, no taxes to deduct and no imprecision for overtime, commissions, bonus, or variable cash awards. 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. As the SHRM article reminds us, you may currently offer salaried employees incentives, more time off or levels of benefits not available to your non-exempt employees. In case you've been crazy busy putting out fires, it's time to notice that the DOL is expected to release its final overtime rule any day now.

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 Aon Hewitt did not even start tracking short-term rewards and bonuses — known as variable compensation — until 1988, when they accounted for an average of 3.9 percent of payrolls. Compensation Philosophy Incentives/Bonuses Recognition Total Rewards

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.

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. Life would be simpler. Compensation would merely be a matter of dispensing the right sums. All employees could be fully engaged by a simple cash payment. .

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

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.

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. Money is not the only reward available to serve your compensation program. You can't rely on cash alone, anyway, in these times.

The Misallocation Dilemma

Compensation Cafe

Government routinely cost-shifts social benefit expenses into employer payroll burden. Meanwhile, we who frequent this corner of the total rewards world tend to obsess about the many challenges we face dealing with all the complexity we find behind wages, salaries, bonuses stock options and fringe benefits. 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. Before the last-minute temporary injunction , most employers went ahead and made the necessary changes to wages, salaries and payroll practices, anticipating the new rule. 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. Base Salaries Compensation Communication Compensation Philosophy Incentives/Bonuses Total RewardsI'm working with a small company with huge potential for growth. They are setting up another production location and we have been talking about how to make this work.

Should Your Company Offer Profit Sharing?

HRIS Payroll Software

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. Employees may expect bonuses to be the same every year, regardless of how well the company did that year. appeared first on HR Payroll Systems. Benefits Payroll