Employee Benefits
11th December 2020
6:00 am
10th December 2020
1:25 pm
This week, I am having another little foray into the frisky world of compensation. Everyone in HR has been enlisted to help managers plan year-end bonuses for their teams. They should not need any help. We have an app for that. The app tells them who in their team is eligible for a bonus and it tells them how much they can spend. Simple, right? If only.
The difficulty comes down to the fact we have a zero-sum pool to fund the bonus scheme. That means that any extra bonus to one employee has to be paid for by sacrificing another’s. This creates such mayhem, I really believe it would be less contentious if we handed out bonuses based on a random number generator. It would be easier to justify the result.