Types & Benefits Of Employee Bonus
2 years ago
Compulsory or at the employer's discretion, bonuses are a useful lever to retain, compensate or reward your employees. Seniority, purchasing power, risk, or balance sheet bonus: find out about all the main bonuses that you can grant to your employees.
Bonuses Related To The Type Of Work Performed
Certain bonuses are linked to the daily life of the employee, and in particular, to the difficulties, he may encounter. The very nature of the work and its working conditions are concerned: does the employee work staggered hours? In difficult conditions such as cold or unsanitary conditions?
They are included in the collective agreement, in a branch agreement, in the internal regulations, or in the employee's employment contract. It can be:
· Risk bonus
· Cold bonus
· Insalubrity bonus
· Nightshift bonus
· Sunday work bonus
· On-call bonus
· Security bonus
· Clothing bonus
Bonuses Related To The Company
As part of his employment contract, the employee can benefit from various advantages and bonuses. These are linked to the company in general or to an employee in particular. They concern the employee's presence (attendance bonus), their loyalty to the company (seniority bonus) as well as certain aspects of their professional (transport, meals, etc.) or personal (marriage, births) life. They can also be linked to the performance of employees, to motivate them in their work. In this case, they are both individual and collective and linked to the results obtained, from objectives set-upstream. This is often the case with commercial jobs, for example. Here are the main ones:
Bonuses linked to employee performance (direct bonuses) or company (indirect bonuses):
· Balance sheet bonus
· Performance bonus
· Bonus on objectives/results
· 13th month
· Seniority bonus
· Attendance bonus
· Employee shareholding
· Stock options
· Social benefits (company mutuals, supplementary pension plans, and provident products)
Bonuses linked to an event:
· Wedding bonus
· Birth bonus
· Packed lunch
Benefits of Employee Bonuses
Bonuses help engage employees and boost productivity. Before issuing bonuses, review your business strategy to help determine where bonuses may help you achieve your business goals.
The granting of bonuses that are not necessarily planned is an advantage for the company but also for its managers. Indeed, the unexpected arrival of financial advantage is experienced for employees as an additional motivation. These financial advantages tend to develop in the employee an attachment to the company. This financial compensation illustrates work “more than good” carried out by employees, the company expects its salaried staff to carry out the work correctly, but can highlight work carried out beyond the objectives set-upstream.
These bonuses also help to develop a feeling of attachment to the company among employees. Therefore, if a hard blow hits the company, the company manager can count on the salaried staff who will then be keen to save the company.
The advantage of bonuses for companies and for managers is to be able to categorize their requirements. These requirements will make it possible to communicate to the employees all the evaluation criteria to judge the work carried out. This makes it possible to set the rules and create qualitative and quantitative benchmarks for employees but also collective and individual objectives whether monthly, quarterly, half-yearly or annual.
Mandatory Or Optional?
Bonuses are compulsory when they are included in the employee's employment contract, stipulated by a branch agreement or by the collective agreement, or included in the internal regulations. They are not always fixed and may vary depending on the results of the company or the employee. They can also be linked to the presence in the company on the first and/or the last day of the year, or calculated in proportion to his time of presence. In this case, they are considered as part of the salary. Other bonuses are "voluntary" and granted according to the goodwill of the employer. In this case, they are subject to social security contributions but do not take into account the calculation of the salary (therefore the minimum wage, the calculation of overtime or paid holidays).