23 Nov Here is how some companies handle bonuses
The Creative Group has published its 2018 Salary Guide, which offers info on trends, starting
salaries and benefits, which will help you get a sense of where you stand.
Here’s a look at the report’s take on current compensation practices. See how your comp plan
1. it’s about performance.
Sixty-five percent of the employers who participated in The Creative Group’s research said they
base their comp decisions on a pay-for-performance model:
• 37% offer spot awards for individual or team achievements
• 20% offer profit sharing
• 18% have retention bonuses
• 18% offer some stock options, and
• 16% give their employees deferred compensation.
2. Just 19% of those participating said they didn’t offer any form of bonus to their employees.
Of the remainder:
• 27% offer bonuses on the basis of individual or company performance
• 22% combine individual, team and company performance
• 16% base the bonus on individual achievement only, and
• 8% based bonuses on company performance only.
3. How companies determine salary increases:
• 72% base them on merit
• 38% use cost-of-living adjustments
• 17% consider length of service
• 16% use different criteria, like market data, and
• 3% said they had no hard-and-fast standard for setting increases.
4. Time off: The Creative Group report said that on average, companies offer 14 days of paid
vacation for the first five years of employment, plus nine paid holidays.