Performance-related bonuses could help attract talent
Performance-related bonuses could play a big role in attracting talent, after they were praised by an independent report.
The Performance and Reward Centre (PARC) has published a report which claimed that bonuses were a valuable way of communicating targets and priorities to a workforce, by motivating and focusing employees.
This is even said to be the case when a company is in difficulty and being forced to downsize, as it galvanises workers to get the most out of a smaller team.
Director of PARC, Kevin Abbott, told HR Magazine: “Our research shows that bonuses are a valuable business tool, and many companies have adjusted their arrangements so that they stay relevant, achievable and fair in the current economic conditions.”
The new study could mean that wider implementation of performance-related bonus schemes could be put in place.
It is suggested that they would be beneficial to both employers and jobseekers, as they could encourage people to choose a job they would excel at – with sales jobs in London given as a prime example of where such a scheme would work.
Abbott continued to say that, for many: “Some form of bonus plan is a normal part of their reward for delivering their objectives.”
“For most these are not substantial sums, but an element of pay based on the achievement of financial or non-financial targets that are important for their role, their team or the company as a whole.”