Many entrepreneurs are aware of the the difficulty of building a successful teamIn this way, members collaborate together to achieve the company's objectives. However, once this has been achieved, it becomes crucial to keep these professionals motivateddo you agree?
By 2024, there will be a growing tendency for companies to invest in innovative forms of remuneration, with the aim of motivating their employees beyond traditional salary compensation. bonuses for results for employees.
In this blog, learn more about the diversity of bonuses and how each type can be adapted to meet the company's needs and goals. Have a good read!
What is an employee bonus?
Employee bonuses are a form of flexible benefits designed to recognize performance that meets or exceeds the targets set in a specific period.
In addition, this bonus can be granted individually, recognizing the highlights among employees, or collectively, giving it to an entire team.
What is the purpose of bonuses for results?
Bonuses for results are a strategy to increase employee motivation and, consequently, efficiency.
In addition, companies can adopt a bonus system to recognize and value those employees who dedicate themselves intensely and contribute directly to the organization's financial success.
What is the difference between bonuses and PLR?
Profit Sharing (PLR) is an alternative form of recognition aimed at boosting employee productivity.
However, the main difference between bonuses for results and PLR is that the latter requires a process of negotiation between the company, its employees and union representatives, through a Collective Agreement.
In addition, once the PLR has been established, it is compulsory to pay it every year in which the company shows positive profits and results. The bonus for results, on the other hand, does not require prior negotiation and has a variable periodicity.
5 effective bonus-for-results strategies
A highly effective way of rewarding employees is associated with recognition for excellence in performance. That's why we've put together 5 effective strategies for examples of bonuses by results. Check it out!
1- Reward for overtime
It is often necessary to work overtime in order to meet or exceed the targets set for a given period, or to compensate for a colleague's absence.
In this context, rewarding employee effort with health-related benefits can be an effective approach. This strategy can include a day at a spa, paid time off, a yoga class, a relaxing massage or even a weekend off.
What's more, such actions not only recognize the employee's proactivity, but also express gratitude for the work done.
2- Bonuses for achieving targets
Another way of rewarding employees is through extra pay or prizes for reaching targets in a given period. However, this differs from commission, which is more regular and defined by sectors, such as sales and marketing.
In addition, this practice can be used to encouraging employee growth within the company, according to their monthly or annual evolution, providing an additional approach to motivating the team.
Looking for bonus software? Discover Score by Actio!
3- Referral rewards
Similar to commission, this bonus for results occurs when employees recommend the company's products or services to third parties who make a purchase.
This can involve a fixed amount per conversion or a percentage based on sales, and can also include sharing the company's profits with those who have obtained the most conversions throughout the year.
What's more, this initiative promotes engagement and creates a sense of belonging.
4- Registration for courses and specializations
Many professionals are constantly seeking training and growth in their fields. Therefore, a significant bonus can be to offer participation in courses, events and specializations, motivating employees and contributing to their improvement.
Thus, this award values employeesThe company's employees, who always seek the best results for the company, while at the same time promoting the training and improvement of their knowledge, skills and competencies.
5- Bonuses for creativity and innovation
Finally, this bonus for results is awarded when an employee or team comes up with an innovative idea that has a positive impact on the company's results.
Thus, this reward values creative potential and encourages the generation of more innovative ideas.
Open innovation is key to driving the creation and development of differentiated projects, raising the company's profile in the market, increasing profitability and surpassing established targets.
How to implement bonuses for results?
Implementing a bonus by results plan requires attention to a few steps and the definition of criteria to ensure effectiveness. Here are the main points to consider:
1- Know your team's profile
Understand your employees' preferences by asking them what motivates them. In addition, aligning the benefit with their expectations makes the bonus more effective.
2- Establish a budget
Clearly define how much will be allocated to the bonus. In this way, having a budget in advance helps to maintain the transparency and viability of the plan.
3- Create a goal plan
Set clear, realistic and achievable goals. Therefore, avoid obstacles to awards by ensuring that the goals are understandable, challenging and aligned with the company's objectives.
4- Establish strategic partnerships
Explore partnerships that can offer benefits, such as discounts on products or services. In addition, this enriches the bonus program, making it more attractive.
5- Communicate efficiently
Make sure that all employees clearly understand the rules of the plan. In addition, efficient communication is essential for success, avoiding misunderstandings and encouraging participation.
6- Avoid delays in rewards
Finally, strictly adhere to payment deadlines. Delays in delivering bonuses can lead to frustration and compromise the effectiveness of the plan.
By following these steps, you'll be better prepared to implement a bonus-for-results plan that motivates the team and contributes to the company's success.
Why invest in result bonuses with the help of software?
Technology can be an ally in choosing the bonus that best suits your company. That's why Actio has developed Score software, which seeks transparency in disclosing goals achieved and employee bonuses. Falconi, Brazil's largest consulting firm, and which also seeks to bring transparency to the disclosure of targets achieved and employee bonuses.
With Score by Actio, you will have real-time access to individual results, allowing clear visibility in the variable remuneration process. The software also calculates commissions, ICP, PLR, bonuses, ILP, and much more, adapting to your organization’s specific needs. If facing challenges in this area, consider Actio’s software to simplify the process.
Frequently Asked Questions
1- What does a bonus mean?
Bonuses are a way of recognizing a company's employees for achieving predefined goals.
In addition, this strategic form of remuneration involves attractive flexible benefits, aimed at encouraging workers to achieve efficient results with greater engagement.
2- What is the importance of bonuses for results?
Bonuses play a crucial role in planning and profitability, boosting team proactivity and reducing absenteeism and turnover rates.
In addition, they strengthen the bond between employees and the company; improving the working environment and facilitating human resources management, which results in cost savings.
3- Are bonuses included in the thirteenth?
Bonuses regularly paid to workers are considered to be of a salary nature, like "tips". In other words, they must be incorporated into the calculation of the thirteenth salary. However, they do not apply to vacation pay or prior notice.
4- How much is the bonus?
Bonuses for results are not subject to a legally stipulated minimum amount, but must be defined on the basis of an agreement between the company and its employees; or through negotiation with the union.
5- How do bonuses for results work?
The payment of bonuses operates independently of salary, and the bonuses obtained in this context are clearly differentiated.
In other words, without a pre-established limit on the value of these rewards, companies have the autonomy to establish bonus plans according to their needs and goals.
Conclusion
In short, performance bonuses are a powerful tool for motivating and recognizing exceptional employee performance. What's more, the strategies mentioned offer flexibility and adaptability to the diverse needs of companies.
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