How To Measure Managers For Qtrly Bonus?

Experts,

We are planning to propose measuring parameters for bonuses (variable pay), especially for managers who manage people, practice, and service delivery. We plan to look at competencies and roles & responsibilities at these levels and select the measurable parameters. Does this seem meaningful? This is for a private IT company.

I am seeking similar industry trends and best practices from this forum.

Thanks,
Thiru

Dear Thiru,

Performance bonus should be based on the performance rendered by the manager. For this, you need to have accurate measures of performance. Further, their quantification is also important. Have you done all this?

Organisations pay employees for the outcome and not for the possession of certain competencies. What if the manager possesses certain competencies but is unable to deliver results?

It appears that your query could be because you might not have a well-designed Performance Management System (PMS) wherein you need to create very customized measures of performance. This is much easier said than done. It requires immense expertise.

I have been replying to posts on PMS time and again. Click the following link to refer to one exhaustive reply:

https://www.citehr.com/526357-kpi-kra.html#post2228293

For further queries, feel free to contact me.

Thanks,

Dinesh Divekar

Thank you for the response, Mr. Dinesh Divekar.

We have certain key measurable areas based on what they have been told to do (assigned) as a manager. I agree that having mere competency when it does not give the intended outcome cannot be considered for this. We already have a 360-degree appraisal system in place.

Thank you for the links.