Quizzes & Puzzles2 mins ago
Operating A Bonus Scheme
HI
Im offering a member of staff a 3 year pay scale as incentive. ie year 1 increase by £2k, year 2 further increase by £2k, year 3 further increase by £3k.
Would it be possible to offer this as a bonus scheme paid in 12 equal installments?
If the member of staff gets to year three and is now on a higher wage but then decides to now work an achieve bonuses I will be stuck with a high payroll.
Just wondered what I was allowed to do.
Im offering a member of staff a 3 year pay scale as incentive. ie year 1 increase by £2k, year 2 further increase by £2k, year 3 further increase by £3k.
Would it be possible to offer this as a bonus scheme paid in 12 equal installments?
If the member of staff gets to year three and is now on a higher wage but then decides to now work an achieve bonuses I will be stuck with a high payroll.
Just wondered what I was allowed to do.
Answers
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For more on marking an answer as the "Best Answer", please visit our FAQ.If you make it a bonus scheme so that the employees only get the extra cash if they achieve the required target there is no problem. If they do not get the targets they do not get the extra pay.If you just make it an increase in the pay scale for length of service then once they do the time satisfactorily they are on the scale for ever. You need to put in a clause that staying on the higher rate depends on achieving the targets. This should be a bonus not part of the pay-scale.
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