Hello Everyone, I would like to get insights into the process of the project completion bonus. This is purely to benefit employees.
My company doesn't have a variable pay option, but I'm planning to introduce a project completion bonus for every eligible employee.
This will help us in employee retention and a happy client as well.
How to fix the bucket? How to get the process in line? any of your company does this? would like to know all these. Please help.

Note: We are into software consulting and completely do WFH.

From India, Bengaluru
Dinesh Divekar
Business Mentor, Consultant And Trainer

Dinesh Divekar

Dear Krithika Kaushik,

In the footnote, you have mentioned that you are from the software consulting industry and WFH. However, please confirm overall what is the average length of the project in days/weeks/months and in general, how many team members are involved in the project.

Going further, please confirm what tools of project management your company uses? Does your company use PERT & CPM techniques? Which project management software is used by your company?

Some of the ideas for the disbursement of the project bonus are as below:

a) The No 1 eligibility to get the project bonus is of course completing the project in time. However, if there are design faults while making the schedule then the project will get delayed. In this case, the team members may complain that it was no fault of theirs. They also discovered the design fault at a much later stage. The change of design caused the delay.

b) The second factor to consider is to measure the number of hours spent on the project. Do you calculate hours "Budgeted Vs Actual Vs Billed"? Of the three factors, you need to establish a relationship between hours spent actual Vs billed. If it is more than "x" then how do the team members become eligible to get the bonus?

c) This is similar to (b) above. But it is on project cost. You need to measure "budgeted cost Vs actual cost Vs billed cost". If the billed cost is less than the actual cost then only the project members will become eligible to get the bonus.

d) The next thing is customer satisfaction. Ok. The project deadline was met. But what if the major bugs are discovered after a few months? What if because of the bugs, the customer's business is impacted? What if the customer imposes a certain penalty for the faulty delivery of the project? Therefore, you need to decide the timeline of the disbursement of the bonus amount also.

e) Lastly, who would be eligible to receive the bonus amount? What if a project member leaves the job? Will he/she still be eligible? Suppose, when the actual disbursement of the bonus amount takes place that time some of the project members are not on the rolls of the company. Will he/she be eligible to receive the bonus? If not then where his/her share will go? Will it be absorbed by the company or other project members who are still working in the company?

These are some of the ideas. While designing the policy on disbursement of the project bonus, please take into account all the possibilities. Once the policy is rolled out, if you make changes thereafter then it could demotivate the employees. Therefore, show the power of anticipation and foreclose the possibility of disgruntlement.


Dinesh Divekar

From India, Bangalore

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