See a bonus for what it really is
The issue of recognition of employee contribution by way of bonuses has emerged as a topic of significant interest within the current marketplace. Human resource experts at Accsys, a national supplier of payroll, HR, Time & Attendance and Access Control solutions, say that in the current socio-economic climate, it may be best to treat a bonus as discretionary, based on measurable results, unless stipulated as part of a contract.
The bonus or ‘13th cheque’ is used as a means of recognising and rewarding the efforts of individuals within a business. The criteria upon which bonuses are issued varies from company to company, and is often negotiated between employee and employer during the final stages of recruitment.
Teryl Schroenn, CEO at Accsys, says the approval of bonuses and distribution thereof is dependent on a number of factors.
“In the past bonuses used to be built into a package and were, for the most part, an expectation. However, in the past few years, we have experienced a shift in policy and mindset. Many companies now base their bonus structure on clearly defined deliverables,” says Schroenn.
These deliverables are usually structured into packages and may be around profitability or project completion. However, the situation becomes complex when an employee ‘expects’ a bonus and does not receive one, or when certain precedents are set by a company in terms of policy which may be seen to be subjective.
“If certain precedents have been set by management to award bonuses or incentives to certain people and not to others, there would certainly be a case for taking the matter up with a line manager or officially querying the reason,” says Schroenn.
“This would also enable the employee to understand how management is evaluating his or her performance and to request direction around improvement so that he or she is considered a contributor when the next bonus payments are made,” she continues.
According to Accsys management this is important to understand in order to effectively manage employee reaction to the payment of bonuses.
“Decision makers often have to be concerned about the security of their employee base following the payment of bonuses. While there are employees who stay in jobs to ensure that they receive their bonuses and resign immediately afterwards, there are those who will stay but be demotivated.
The most constructive thing to do is to be honest and give the facts as they are - this will allow the employee to give his/her viewpoint and there should be a positive way forward. Employees who are poorly rated by management may resign, but where there is potential, there is the possibility of growth for both sides during open communication,” Schroenn explains.
