Discussion Forum: Pay and Rewards: You Decide (please complete by Wednesday)
How you would distribute variable pay across an employee group?
If you managed a team, and you were given an annual bonus pool to spread among your employees, how would you divide it?
In the below table, you can see the performance ratings of your employees. You assigned these.
In your post, fill in the following table and offer a brief explanation for why you chose that distribution.
| Performance | Number of Employees | What percent of bonus pool would you give? (total == 100%) |
| Outstanding | 1 | [X%] |
| Above average | 2 | [X%] |
| Average | 4 | [X%] |
| Below average | 2 | [X%] |
| Poor | 1 | [X%] |
| Total | 10 Employees | 100% |
Purely fictional example response:
"In the below, I divide the bonus pool equally among the workers. I think equality in the workplace is the most important thing. Even the poor performer is still a valued member of the team. Giving less to the poor performer and more to the best performer wouldn't boost performance, it would demoralize everyone but the top performer. In the place I work, it's more about the team than the star."
| Performance | Number of Employees | What percent of bonus pool would you give? (total == 100%) |
| Outstanding | 1 | 10% |
| Above average | 2 | 20% |
| Average | 4 | 40% |
| Below average | 2 | 20% |
| Poor | 1 | 10% |
| Total | 10 Employees | 100% |