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Designing a Performance-Based Bonus Scheme

   

Added on  2019-09-20

5 Pages961 Words428 Views
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CERA's Bonus Scheme
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Bonus schemeThe bonus is defined as the amount of incentive which is given by the employer to the employee and it is the portion of profit which is distributed in order to increase the productivity within the particular time period. The bonus can act as a tool which plays a vital role in achieving the desired outcomes of the company. The bonus scheme is developed by considering the wide rangeof factors which are affecting the performance of the company. There are various problems which are associated with the bonus scheme such as ineffectively of the scheme on improving the performance of the company, improper team management, poor customer service, demotivated employees and others.Problem The aim of the bonus scheme is to provide benefits to the employees but the issue is that the employees are getting fixed bonus and their work pressure and achievements are higher than the bonus received by the employees per year due to which employees are demotivated which impacts on the organizational performance. Other problems related to the bonus scheme include ineffective bonus scheme, the poor performance of the company and others.Proposed solutionAccording to the researchers, it is stated that the bonus system should motivate the employee who improves the job satisfaction and security within the particular time period and it improves the retention rate of the employees (Nido, et al., 2015). The solution to the problem is that the company must start performance-based bonus in order to motivate and satisfy the employee by paying them on the basis of their performance within the specific time period. According to the
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