Staff bonus schemes are a fantastic method of improving productivity, says one business executive.
John Timpson has claimed that bonus schemes are great for injecting some buzz into a business, as long as they are delivered properly.
In an interview with telegraph.co.uk, he urged business owners to adopt a simple scheme based on staff receiving a cut of profits.
He said: “Don’t invent a different scheme for every department. If every manager has a custom built incentive you will lose control. It is better to reward all executives with a percentage of salary based on profits. Keep the calculations simple.”
Those who have signed a franchise agreement may feel bound to adopt a bonus scheme that is already in place, although much of the time they are free to adopt their own payment methods.
It was recently revealed by employeebenefits.co.uk, that most European companies will offer lower pay rises than last year, so a bonus scheme might prove to be an increasingly important method of keeping workers satisfied.
However, Timpson was keen to warn readers about complicated new schemes, saying that he worries about new projects that receive huge “fanfare” but then suddenly disappear. In his opinion, schemes that disappear straight away have failed.