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Have you opted for performance bonuses for you employees? If so, then follow these six steps

by , 12 October 2015
A bonus is a payment that you make to an employee. It's a payment made over and above the employee's normal pay and acts as an incentive or reward.

Having said that, there are three common types of bonuses and it's up to you to decide which one will best suit you.

They are:

· Discretionary bonuses;
· Performance bonuses; and
· Guaranteed bonuses.

Should you opt for performance-bonus option, the one where you reward your employee based on his performance, there are six steps you should follow.

They are:


Ensure the employee's job description is complete and up-to-date. Also ensure the employee fully understands it at the beginning of the
performance assessment cycle.


Make use of a standard performance evaluation system. Apply this system CONSISTENTLY among all your employees.

You're obliged to do performance reviews. That's why you need an extremely easy to use, highly efficient system.

The first performance review software is now available in South Africa.

This software will help you determine quickly and accurately:
  • Your employees' skill levels;
  • How every employee contributes to the overall business performance;
  • The training and skill-enhancing requirements for every one of your employees;
  • How to properly motivate your employees;
  • The required disciplinary measures.
Click here to read more…


Assess the employee's performance regularly. This should be done at least once a year.


Assess your company's performance in an objective manner.


Look at any other measures you set as factors before paying bonuses.


Make use of a standard system to calculate the percentage that employees qualify for.

If you are unable to do this, then look at what you did before, alongside how you dealt with other employees' bonuses.
So, there were six useful steps to follow if you wish to use performance bonuses for your employees.

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  • Information on the problem areas managers have to handle in the workplace daily, and appropriate solutions;
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Have you opted for performance bonuses for you employees? If so, then follow these six steps
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