In order to be effective, a bonus plan must:

• be related to the work performed,
• be consistent with the company goals,
• be seen as attainable by the participants,
• pay out a meaningful amount,
• pay for improved performance.

Effective means the participants will be:

• engaged,
• more knowledgeable about their jobs,
• more knowledgeable about the company goals and objectives,
• inclined to work in concert with other team members.

The results will be:

• a happier, more effective team,
• reduced team member turnover,
• improved incomes for the team members and the company.

How’s your bonus plan?