Cash in on Bonuses
We've all heard about the regular end of year bonus many employers pay out for the holiday season. But don't be fooled into thinking that because your company awards bonuses you're automatically entitled to one.
Most employers base their bonuses on performance or achievement at either a given task or in a role in general. Bonuses come in several varieties and can be one time payments or regular payments employees are encouraged to strive for. A successful bonus programme will give you a target and a strong incentive to achieve that target.
Bonuses fall into one of three main categories: profit sharing, individual incentive and team incentive. A profit sharing bonus is usually based on a company's profits. Employers award profit sharing bonuses to encourage performance and to increase awareness amongst employees of how their performance contributes to the firm's profits.
Individual bonuses come in both cash and non-cash varieties. Many companies offer referral bonuses, which are paid to an individual for recommending a prospective employee to the firm. Spot bonuses recognize special achievements and can be paid throughout the year based on an employee exceeding expectations at a given task. Other forms of individual bonus include holiday and annual leave bonuses, sign-on bonuses for new employees and retention bonuses for existing employees.
Often a company will offer a regular non-cash bonus aimed at recognizing the achievements of an employee. “Employee of the Month” awards can come in the form of certificates, letters of thanks, trophies and gift certificates. While these types of bonuses may not be coveted as highly as the cash variety, they can help employees gain recognition for promotion and salary increases at a later date.
Before you accept a job with a new employer, it is worthwhile to ask about the bonus structure in place and how achievable these bonuses are. Remember that along with your salary and benefits package, a bonus provides a strong motivational factor for you to succeed in your new role. It should also serve to reassure you that your employer recognizes and appreciates your willingness to take on extra duties in addition to your responsibilities.
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