Designing a Profit-Sharing Scheme Based on Performance Metrics and Individual Goals

Hi, I come from the IT industry engaged in mobile outsourced services. I am currently tasked with developing a profit-sharing scheme for our employees. I have already been provided with the budget for the bonus pool. I would appreciate it if you could share any insights on how to design a scheme tied to each individual's KRAs and KPIs.

Your help would be greatly appreciated.

Thank you,
Roch

Hi,

Any performance bonus will generally have 5 elements to address. If you can identify and assign weightage to these elements, you can develop a good bonus scheme:

1. Volume/target/quantum of output/turnover
2. Timely delivery
3. Quality of work/rejections/success rate
4. Cost of delivery
5. Ethical issues/values

When referring to ethical issues, I mean acquiring business without any legal complications. This could serve as a starting point.

Siva

That's really helpful. It has added value and includes almost everything that should be there to measure the performance of any employee in any industry.