Tips for determining the best bonuses for employee motivation

by | Dec 27, 2018 | Analysis, Public Relations

Motivating your employees is one of the most important things you can do as a business owner or manager. However, you need the right strategy in order to achieve it.

If you don’t, you could end up not giving them enough bonuses or giving them more than necessary. Both of these mistakes could affect your business and your profits. So make sure you use these tips to determine the best bonuses:

Percent of profit

How much your employee contributes to the profit is a major factor in bonuses. You would love to give them all the bonuses in the world. However, the amount you give them needs to be in line with how much they actually bring in to the company. If you are giving out thousands of dollars of bonuses for performance that only brings in a few hundred dollars, it simply won’t be sustainable.

Find ways to reward your employees that doesn’t break the bank. For instance, it doesn’t always have to be cash. Consider options like special days where they can wear what they want. Or offer more vacation time. There are other things you can motivate employees with to be more reasonable based on their contribution.


Whether you are in the home security, food, or entertainment industry, the role your employee plays matters. If they are in a certain position, they might have more responsibilities and tasks they have to care of.

Depending on how much they have on their plate, they can get stressed easily. You don’t want to offer your bonuses to the people who are not working the hardest. Keep your “A players” happy and you can go far. There is nothing wrong with special treatment if they are providing a special role to the company that is hard to replace.


You can’t teach attitude. You can try to have meetings and inspire them. At the end of the day, the employee will decide the kind of attitude they bring to the table every day. A positive attitude is essential in business.

When someone is in a good mood, it affects everyone else. It can encourage them to work harder. It rubs off on customers too, who will have a better view of the company. So consider offering more bonuses based on attitude scores throughout the year.


There is a difference between showing up one time with a great performance and doing it again and again. When someone is consistent, you know that you can rely on them. If they are not, it’s hard to tell if they will produce the same kind of results in the future.

Because of the fact that consistent and loyal employees help you plan better, you need to put a premium on that. Reward them for more time with the company and continued results over a period of time.


Seniority should not be rewarded for the sake of it. Instead, they might reach certain milestones. For instance, someone in the customer service department might get promoted.

For certain big career moves like this, you want to keep the best. You don’t want them jumping ship. So when someone moves up, add to their bonus pool.

Proximity to revenue

The closer an employee is to the revenue, the more valuable they are. For instance, someone in sales or marketing is directly tied to your bottom line. This is different than other positions that are more for maintenance or administration. Adjust your bonuses according to their contribution to revenue and profit.

When it comes to motivating your team, you need a solid plan that is proven to get results. That way you can move faster, achieve more goals, and keep your employees happy. So don’t risk falling behind in your market. Have solid strategy that will keep your workers focused on getting the right results for your business. That way your competitors don’t pass you by.

Jeremy Sutter
Jeremy Sutter is a freelance writer and former mobile marketing manager at Adobe.


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