Bonuses help employers recognize and reward employee contributions, improve morale, and increase productivity. However, employers need to develop their bonus programs carefully. Employers have been held legally responsible for paying bonuses expressly promised to employees as incentives. On the other hand, bonuses that are completely discretionary are not usually viewed as implied contracts. Under the Fair Labor Standards Act (FLSA), bonus payments must generally be included in the calculation of a worker's hourly rate when figuring the overtime premium.
Performance Rewards Put Employees in Orbit
Your employees have worked hard all year, meeting goals, increasing sales, and bringing in new business. It?s time to let them know how much you appreciate their efforts. Should you hold an awards banquet, like you did last year (and the year before)? Or should you try something new?
Employee Recognition: How Qualcomm Shines Its Stars
When San Diego-based Qualcomm set about revamping its employee recognition program, the wireless technology company tried, wherever possible, to remove the HR and Finance departments from the process.
Survey: Recognition Program Budgets Will Continue to Rise
A recent WorldatWork survey indicates that employee recognition programs are as prevalent among--and important to--employers today as ever. And budgets for these programs are expected to rise in years to come. What are the most popular types of program awards being used?
Most Year-End Bonuses Given 'Across the Board'
Most employers gave out bonuses at the end of 2007, and the majority of those that did gave them to all employees as opposed to just high performers or top line management only, according to a Compensation.BLR.com poll.
Profit-Sharing Plans
Profit-sharing plans provide a financial safeguard for funding by
ensuring that an overall business unit profit level is achieved before any payouts are made. And, they provide an opportunity to train employees on financial measures and the operational business factors that affect those measures.
