Dear Manpreet,
What kind of consulting business does your company handle? What are the core departments? What are the supporting departments? What is the total employee strength in your company?
Before making policies on "Performance Bonus," you need to have a policy on performance itself. Have you done that? Have you devised means to measure performance scientifically? Do you measure what deserves to be measured? Performance bonus depends on the score an employee attains in quarterly or half-yearly Performance Appraisal (PA). Do you have a proper
Policy on Performance Appraisal (PA)? If yes, has it been communicated to all the staff members? If communicated, has it been understood by them?
If your policy on PA, by chance, is flawed, then obviously your policy on performance bonus will be flawed. Therefore, I recommend checking first whether the proper foundation is laid or not. Else, it could impact employee motivation and organizational culture in general.
PA is a powerful source of employee development. However, it is a double-edged sword. With its wrong application, it undercuts growth and leads to employee attrition as well. Therefore, I recommend exercising utmost caution. Feel free to call me on my mobile for further queries, if any.
Thanks,
Dinesh Divekar