Bonus Scheme Report

Bonus Scheme Report

This study indicates that, an organizational culture plays a vital role in maintaining and developing dedication and involvement to innovation. The role in boosting innovation stems from the commitment made by the organisation in terms of rewarding and motivating employees. The report highlights the reasons why companies reward their employees and further provides an analysis of the Bibby Financial Services (BFS) bonus scheme.
• Most companies such as BFS offer bonus schemes based on the work that an employee does and bonus they can achieve.
• The Head Office Bonus for employees includes a 5 % PRP, 5 % UK PS, and 10 % Global PS. The Head Office proposed bonus for UK based employees is split at 5 % PRP, 10 % UK PS, and 5 % Global PS.
• Most senior executives or directors pay packages comprises of various components such as salary, share options, Long Term Incentive Plans (LTIP), and annual bonuses.
Current Situation of BFS on Bonus Schemes
• The field regarding executive pay structure has developed considerably from 19th to 21st century.
• For the past years, the company has provided a wide range of benefits for their employees such as bonus and recognition schemes.
• The company has been rewarding the best and hardworking employees.
• The company also recognizes the need of rewarding its top management with sufficient salaries that motivate, retain, and attract competent directors.
• The company has implemented flexible bonus schemes that relate to employees and their family such as dental cover, health assessments, and extra holiday.
• The bonus scheme has also included an updated bonus scheme and a new pay structure across all locations.
• Currently, people working in local offices also have a chance of enjoying regional bonuses.
• The Company reward employees for their enthusiasm and commitment. The bonus schemes are allocated based on the work that an employee does because employee rewards and bonus schemes are set to meet the goals and objectives of a business.
• Allocation of bonus schemes takes into account various factors such as quality, individual and team performance, customer service, attendance, or HR related measures.
• Employees should be given bonuses according to their job, location, and description of their tasks.
• For the past years, the company has not been in a better position to reward employees based on their location and job performance.
• If an employee’s performance or job does not affect regional profit, then such an employee should not receive regional bonuses.
• The best pay structure should one that reward employees based on their location, description of the task, and their performance towards enhancing growth in the companies.
• Herzberg theory claims that dissatisfaction and satisfaction are brought by different factors. For instance, it is important to reward employees based on their job, location, and description because it enhances satisfaction at the work place.
• Maslow theory places emphasis on the fact that an organization or an employer must comprehend the current need of employees to know what motivates them.
• McClelland’s theory on motivation affirm that it is important to identify people’s motivation drivers as they help to give feedback and praise effectively and keep employees motivated.
• Based on this theory, the company should identify the input or profit achieved locally and regionally and further reward employees who have caused such growth.
• Rewarding employees based on their performance, location, and job description would keep employees motivated for their input towards the company’s growth.
• The contribution of their input determines how the company flourishes in its sales and revenues. In determining the executive pay, companies should consider the input brought by the management team. In this case, any behaviour that promotes growth in the organisation should align with the best bonus scheme to encourage and motivate good performance in the future.