We do. You have basic metrics that are set to pay out 100% of a bonus. How the company does based on those metrics determine if the Bonus is paid out more than 100% or less than 100%. Then each individuals have their own goals and metrics they have to meet to determine if they get 100% of what the company is paying out or more or less. Bonus percentages are based off of position in the company. Highest positions will be 30 % of salary, next level is 25, then 20, then 15... so on and so forth,
So company did really well and exceeded metrics by 30% and will pay out 130%. Employee A did well and met their goals and their position is 10% bonus of salary.. so they now get 10% of 130% of their salary. Employee B did ok and met most goals but not all, so they get 90% of the 130% of their salary. Assuming they were also at 10% bonus rate.
So say both make $100k a year... Employee A got a $13k bonus and employee B got $11,700.
Tue, Nov 9, 2021 12:07 PM
I was tasked with developing a profit-sharing plan to implement in 2022. I was told to start with Executive and operations levels first, and if successful, we will roll the program out to our site-level managers. It is a little difficult to be subjective in my framework for the policy, considering I am on the top level, but I'll try.
Does anyone else have profit-sharing at their company? If so, would you mind revealing how you r company is setup (basics, no details needed).
