In China, the calculation method and specific value of performance bonus often vary depending on the company, industry, region and position. Here are 7 common calculation methods and examples:
a.Monthly performance bonus: individual performance bonus = 10% of the basic salary of the month Department coefficient Individual assessment grade coefficient.
b.Annual performance bonus: year-end bonus = (coefficient number of months of continuous service basic salary) 12 percentage of ratings. For example, if a person's basic salary is 5,000 yuan per month, he has worked continuously for 12 months, and the rating percentage is 90%, then his year-end bonus is: (12 12 5000) 12 90% = 5400 yuan.
According to the results of the departmental assessment, the department coefficient is determined, so as to calculate the total amount of performance bonuses due to the department. For example, if the assessment result of a department is excellent, the department coefficient is 12. The total basic salary of all employees in the department is 100,000 yuan, then the total performance bonus of the department is: 12 100,000 = 120,000 yuan.
The calculation method of the organizational performance bonus will take into account the company's overall performance, profits, and other factors. For example, if a company's annual profit reaches 20 million, exceeding the expected target by 5 million, and the company decides to use 20% of the excess as an organizational performance bonus, then the organizational performance bonus is: 5 million 20% = 1 million.
Companies set key performance indicators (KPIs) that employees or teams can earn when they meet them. For example, if the sales team achieves 120% of the annual sales target, the company decides to give the team 5% of the sales as a bonus.
For some large-scale projects or important projects, companies will set project performance bonuses to motivate employees to complete the project better. The amount of the prize money is usually determined based on factors such as the size of the project, the difficulty and the quality of the completion. For example, a company successfully completes a project worth 1 million yuan and decides to use 10% of the project profit as a project performance bonus.
In order to motivate employees in the long run, some companies will give **option or restrictive** as part of the performance bonus. This reward is usually tied to the company's share price performance or performance goals. For example, if a company gives an employee 10,000 shares** option** and the exercise is $5 per share, if the company's stock price reaches $8 in the next year, the employee can exercise the option and receive a profit.
Companies share a portion of profits with employees as performance bonuses. This type of plan usually distributes a percentage of the profits of the business to the employees. For example, a company decides to use 10% of its annual profits as a bonus pool for a profit-sharing plan, which is distributed based on factors such as employees' contributions and positions.
In general, the calculation method and specific amount of performance bonus should be determined according to the actual situation of the enterprise and the contribution of employees. When designing the performance bonus system, enterprises should fully consider the expectations and incentive effects of employees to ensure that the system is fair, reasonable and operable.