HomeHome SearchSearch MenuMenu Our productsOur products

Think paying bonuses isn't worth it? Consider these five benefits

by , 03 November 2014
The Labour Law for Managers Loose Leaf Service defines a bonus as something that you give or pay to an employee over and above his usual payment. It's given as an incentive or reward for good work.

For example, your employee brings in a new client who then places orders with you to the value of R200 000. To reward him for a job well done, you pay him an extra 10% on his salary at the end of the month as a reward.

When it comes to bonuses, some employers decide not to pay them. They think it's not worthwhile and it's just an unnecessary expense.

If you share a similar view, you need to know that there are some benefits to paying bonuses. Here are five of these benefits...


*********** Product endorsement ************
 
With 83 forms, 87 templates and 17 checklists at your disposal, NO HR issue, labour query or health & safety concern will ever cause you sleepless nights again

From absenteeism to discipline, hiring and firing, dealing with compensation for injuries in the workplace, the 189 documents you'll find in the A-Z of Master Forms and Templates will show you what you need to do and which forms you'll need to have on hand to deal with every employee issue you can think of.

Click here to read more…

************************************************

 

Here are five benefits of paying bonuses

 
According to the Labour Law for Managers Loose Leaf Service, paying bonuses can:
 
1. Motivate your current employees;
 
2. Make your company attractive to potential employees;
 
3. Make sure skilled and valuable employees stay at your company;
 
4. Ensure your remuneration and benefits are competitive when compared to other employers; and
 
5. Ensure you get better results from employees by linking pay with performance.
 

Now that you know about the benefits, take a look at the three types of bonuses you can pay

 
The three most common types of bonuses are:
 
  • A discretionary bonus;
  • A performance bonus; and
  • A guaranteed bonus (e.g. a thirteenth cheque).
 
Before you knock bonuses as not worthwhile, consider these five benefits.
 
PS: For more information on bonuses, check out the Labour Law for Managers Loose Leaf Service. The Loose Leaf Service also gives you all the details you need for maximum protection in labour-related problems.
 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>