hogmaw Posted July 24, 2009 Share Posted July 24, 2009 I'm about to expand the business a bit and take on two more people meaning there will be 4 employees altogether including myself. I'm thinking of offering some kind of incentive to produce good work rather than just a basic wage, like a % of the annual profits or something. Can anyone tell me what kind of % to consider offering? I don't know what's the norm or if there is some kind of industry standard. Or other kinds if incentives, performance related pay schemes etc that I can decide upon. THX Quote Link to comment Share on other sites More sharing options...
TopgunTT Posted July 24, 2009 Share Posted July 24, 2009 Everyone likes a Christmas bonus Quote Link to comment Share on other sites More sharing options...
marc_p Posted July 24, 2009 Share Posted July 24, 2009 What's the business? Quote Link to comment Share on other sites More sharing options...
Guigsy Posted July 24, 2009 Share Posted July 24, 2009 I dont recall the percentage i used to get. but it was a profit share we got yearly. Quote Link to comment Share on other sites More sharing options...
hogmaw Posted July 24, 2009 Author Share Posted July 24, 2009 What's the business? Mailorder records & CDs Quote Link to comment Share on other sites More sharing options...
hogmaw Posted July 24, 2009 Author Share Posted July 24, 2009 I dont recall the percentage i used to get. but it was a profit share we got yearly. Yes that is what I am thinking, maybe 10% of the profits shared out... is that a lot or am I being tight? Hmmm Quote Link to comment Share on other sites More sharing options...
Guigsy Posted July 24, 2009 Share Posted July 24, 2009 i think mine might have been a scale depending on how well we did. more proffit more %, could be wrong though. lol Quote Link to comment Share on other sites More sharing options...
Havard Posted July 24, 2009 Share Posted July 24, 2009 What's the business? Cheese on toast.....!! Yes that is what I am thinking, maybe 10% of the profits shared out... is that a lot or am I being tight? Hmmm How much is your annual profit normally?? Quote Link to comment Share on other sites More sharing options...
hogmaw Posted July 24, 2009 Author Share Posted July 24, 2009 How much is your annual profit normally?? As this is a company that I have just bought we only have a forecast at the moment, which is 88k gross Quote Link to comment Share on other sites More sharing options...
Havard Posted July 24, 2009 Share Posted July 24, 2009 As this is a company that I have just bought we only have a forecast at the moment, which is 88k gross In which case are you talking about sharing 8k between all the staff? Roughly what wage would they be on annually? Also, where do I send my CV.... H. Quote Link to comment Share on other sites More sharing options...
hogmaw Posted July 24, 2009 Author Share Posted July 24, 2009 Oops! Should have said the NET profit... silly me.... more like 27k Staff wages amount to 43k This is all before I take a penny BTW Quote Link to comment Share on other sites More sharing options...
Havard Posted July 24, 2009 Share Posted July 24, 2009 Oops! Should have said the NET profit... silly me.... more like 27k Staff wages amount to 43k This is all before I take a penny BTW In which case 10% seems a little tight to give them £2700 between them. I would say 10% each to get the best results out of them. This doesn't leave you with much though Gerald..... On relefction for the first year. 5% of the profits per member of staff is better than a kick in the dick I suppose.... I would give them an incentive and let them know that if the first year is a success then 5% of a successful business could be work out to be a lot of ££££'s in a few years time should they put the effort in! H. Quote Link to comment Share on other sites More sharing options...
Geo Posted July 24, 2009 Share Posted July 24, 2009 Our work does a good Incentive. Attendance Bonus, if your not off sick. We get £175 per month Result eh. Needless to say im never ill. :D Quote Link to comment Share on other sites More sharing options...
hogmaw Posted July 24, 2009 Author Share Posted July 24, 2009 In which case 10% seems a little tight to give them £2700 between them. I would say 10% each to get the best results out of them. This doesn't leave you with much though Gerald..... On relefction for the first year. 5% of the profits per member of staff is better than a kick in the dick I suppose.... I would give them an incentive and let them know that if the first year is a success then 5% of a successful business could be work out to be a lot of ££££'s in a few years time should they put the effort in! H. OK so 10% of the profit (£2.7k total) shared out or 5% for each staff member (£4k total) is roughly what I am looking at. Obviously I like the former better. I will sleep on it! Quote Link to comment Share on other sites More sharing options...
Mrs H Posted July 24, 2009 Share Posted July 24, 2009 Make sure you document the scheme with rules etc. and state that you reserve the right to withdraw and amend. You may need to scale the percentage bonus or amend targets in line with your business acitivity. If you don't it just becomes 'expected' and has no effect on effort and performance:) Vicki x Quote Link to comment Share on other sites More sharing options...
hogmaw Posted July 24, 2009 Author Share Posted July 24, 2009 Good advice Quote Link to comment Share on other sites More sharing options...
JustGav Posted July 24, 2009 Share Posted July 24, 2009 Something I used to get, a 13th pay cheque, usually in December, which of course is a really nice sweetener just before the festive season (Keeping it PC ) Quote Link to comment Share on other sites More sharing options...
johnny g Posted July 24, 2009 Share Posted July 24, 2009 I give my employees 10% bonus, paid twice throughout the year, end of September and end of March. I split it 6% and 4%. The 6%, they always get. The 4% is based on them hitting their PGP targets, timesheet/expense submission and peer-reports. Quote Link to comment Share on other sites More sharing options...
Mrs H Posted July 24, 2009 Share Posted July 24, 2009 We used to have monthly, quarterly and annual bonus if we hit net profit targets. If we hit the monthly targets we got a days pay, if we hit the quarter target we got a weeks pay, if we hit the annual we got a months pay. 17 opportunities for bonus Vicki x Quote Link to comment Share on other sites More sharing options...
Havard Posted July 24, 2009 Share Posted July 24, 2009 We used to have monthly, quarterly and annual bonus if we hit net profit targets. If we hit the monthly targets we got a days pay, if we hit the quarter target we got a weeks pay, if we hit the annual we got a months pay. 17 opportunities for bonus Vicki x Where are you hiding this money dear....... Quote Link to comment Share on other sites More sharing options...
ozz Posted July 25, 2009 Share Posted July 25, 2009 i think mine might have been a scale depending on how well we did. more proffit more %, could be wrong though. lol Thats basically how our company works, the better the company does the better percentage you get. The difference is its a percentage of your wages. Plus the scheme is capped. Last year for instance the company made a huge profit so we hit the maximum profit share, everyone got 33% of their annual salary. This year its not looking good for any bonus. Quote Link to comment Share on other sites More sharing options...
Mrs H Posted July 25, 2009 Share Posted July 25, 2009 Where are you hiding this money dear....... I said USED To and you spent it on the Supra Vicki x Quote Link to comment Share on other sites More sharing options...
Paul Posted July 25, 2009 Share Posted July 25, 2009 Something I used to get, a 13th pay cheque, usually in December, which of course is a really nice sweetener just before the festive season (Keeping it PC ) I used to get this too, and a 'holiday bonus' of half a months money in April to help pay for your summer hols Quote Link to comment Share on other sites More sharing options...
tbourner Posted July 25, 2009 Share Posted July 25, 2009 We just have appraisals in November where we are scored and given goals for the coming year, if we complete our goals from the previous year we get a bonus. We're never told how much the bonus is until it happens. We didn't get any last year, just got put at risk instead. Quote Link to comment Share on other sites More sharing options...
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