Source: IRS Employment Review Issue: 920 Date: 24/04/2009 Publisher: IRS

IRS bonuses and incentives survey 2009: employers keep the faith in bonuses

TOPICS:
pay and benefits pay-related incentives/awards

AUTHOR: Michael Carty


The IRS survey of bonus and incentive pay finds that bonuses remain a key part of the reward offering, but 2009 bonus payments are likely to be constrained by the economic downturn.

On this page:
Bonus scheme operated by four-fifths of employers
Types of bonus or incentive scheme
Chart 1: Type of bonus/incentive scheme in operation
Bonus/incentive scheme objectives
Chart 2: Bonus/incentive scheme objectives
Performance levels measured by bonus schemes
Bonus scheme measurement periods
Bonus/incentive scheme metrics: factors measured
Chart 3: Bonus/incentive scheme performance measures
Deciding the bonus pot size
Type, frequency and maxima of bonus payments
The value of bonuses in 2008
Little prospect of bonus growth for 2009
Reviewing bonus/incentive schemes
Changes made to bonus schemes in the past 12 months
Changes to bonus schemes planned for the next 12 months
Disadvantages of bonus/incentive schemes
Chart 4: Main disadvantages of bonus/incentive scheme in operation
Best practice on bonuses
Our research
Table 1: Examples of bonus performance measures and formulae at selected organisations
Additional resources on XpertHR.

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