- 6 December 2018
- Posted by: Anny Lim
- Category: For Employers, Human Resource
All Jobs pay a salary, and most are competitive in the market, a job will usually pay around the same wherever you are, however there’s usually a bonus payment. Made to employees in addition to their basic salary as part of their wages or salary. Bonuses usually depends on fulfilling known criteria such as annual turnover, performance, additional sales and so on. Some small companies offer additional employee benefits as a compensation to their incapability of providing salary bonuses, it also acts as a welfare for their staff members.
Usually at the end of the year, a lot of companies give out bonuses to some selected employees, an additional payment on top of the base salary. The amount of the bonus payment will heavily depend on a company. One of the common advantages that bonus payment offers is it gives you incentive and motivation. Especially when employees are out on the field they need it to make sales or meet specific goals. To further illustrate, you can set a cash bonus option for employees that reach that goal. Motivation is key to attract and bringing in more sales and setting up a bonus payment as a reward will further increase its effectiveness. Other than that a bonus payment can also act as a sense of appreciation, often offered to those hardworking employees. Appreciation and motivation kind of goes hand in hand because receiving a bonus payment shows that the employee is appreciated for his hard work and the sense of appreciation will translate into a form of motivation for him or her to carry on with their hard work for further rewards. On the other side of the coin, fairness and jealousy might be an issue when it comes to salary bonuses. Due to bonuses being given out in several different ways, employees may not receive the same amount or percentage. Bonuses are earned by the employee themselves by meeting certain work criteria, but others might become jealous of the employee’s good fortune.
Furthermore, rather than bonuses for employees, some companies are unable to provide that because they have smaller business. Small businesses must manage expenses and cash flow wisely so the business owners must approach these considerations cautiously and prudently. So that when the employee additional benefits come into play. Employers who offer benefits also are bound by certain laws and regulation, they usually pay advisers and attorneys to help them create benefit plan that comply with the law. With the employee benefits it brings cheaper plan contributions, including health insurance, life insurance and pension plans. Offering benefits to employees also can be advantageous to the business owner who may be able to acquire certain personal benefits for less money than if he or she purchased them privately. All of these benefits, surely there will be cons those them. For instance, offering benefits may cause a company to sustain from legal fees because of the regards of legal compliance. Mistakes made regarding benefits plans might even lead to costly lawsuits or to regulatory fines.
At the end of the day, both benefits and bonuses have their own advantages and disadvantages. Not all companies offer bonus amount of payment or additional benefits but if employees are hardworking enough, those companies will eventually get to a point where selected staffs get them which will motivate them to stay in the company to work and to further development the current company.
Written by: Anson Tan