Loyalty Payouts

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The most common type of bonus system is related to rewarding employees' commitment to the company, in other words, their loyalty. One of the traditional ways to evaluate this loyalty is the so-called thirteenth salary, paid at the end of the year. Sometimes it is difficult to explain why exactly employees receive this additional amount, but it has long been commonplace.

In addition, when a company focuses on developing certain areas, special bonus systems can be introduced. For example, one of the largest Russian companies engaged in the production of baby food is considering the possibility of introducing additional payments for rationalization proposals that contribute to the improvement of production processes.

When using such bonus systems, it bahrain email list is especially important that they do not disrupt production planning and payroll calculations. Sometimes there are cases when companies start paying bonuses for energy savings that turn out to be significantly higher than the amounts saved as a result of these measures.

Read also!

"9 Types of Customer Loyalty Programs"
Read more
Targeted bonuses
Performance-based pay is the name of one of the most well-known guidelines on pay systems in the United States. This document was edited by Peter Chingos, who was the head of the New York office of Mercer Human Resource Consulting. Despite the variety of approaches to bonus systems, the key task of the variable part of the salary remains to stimulate the achievement of specific goals and the fulfillment or even exceeding of plans.

The main advantage of the target bonus method is its flexibility. For example, if one of the company's areas of work does not achieve the expected results, you can simply set an additional target task, the fulfillment of which will affect the size of the bonus.

However, the flexibility of pay-for-performance systems can also have negative aspects: many of them can be too complex and fragmented. For example, if a bonus is awarded only for exceeding planned targets, this can lead to a lack of attention to such factors of labor efficiency as the quality of work or savings on materials. The main thing when developing a pay-for-performance system is to avoid “irresponsible zones” – areas that require improvement, but for which no one is responsible. These zones can be present in many companies and require special attention.

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