Using a Management Bonus Program is an excellent way to motivate management to maximize their performance. My goal is to treat each manager as an owner. I create a bonus program that rewards the management team like they are shareholders. I believe that sharing profits with the management team increases the company’s profits.
The Management Bonus Program.
When a managers’ bonus grows as the profits increase, they treat the business as if they own it. When a company distributes 25% of the profits to the managers, the managers review each financial transaction much closer.
I believe in distributing quarterly and annual bonuses based on the success of the company and the managers. Before I allocate any rewards, each manager must accomplish their personal goals. Also, the company must reach its profit target.
Management Bonus Program should include personal SMART Goals.
The management team and I develop the corporate goals for the business for the following year. When finished, the managers receive a copy of the goals and the annual budget. The managers then develop their personal goals which aid to the success of the corporate goals. We divide each manager’s goals into quarterly accomplishments. The managers and I review each of their goals and make any necessary adjustments.
Management Bonus Program
I review the status of the goals with each manager halfway through each quarter. This procedure ensures that they focus on accomplishing their goals.
We distribute, each successful quarter, twenty percent of the annual bonus. We give quarterly bonuses if the company met the profit forecast and the manager made his personal goals. The fourth quarter bonus is equal the total bonus earned less the amounts paid year-to-date.
Management Bonus Program
We distribute the bonuses only to managers who are currently working for the company. If a manager leaves the company before the bonus payment date, he or she forfeits their bonus.
My name is Robert Curry, and I am an Author, Business Coach, Keynote Speaker, and Turnaround Specialist. Over the past 20 years, I have turned around more than 70 companies taking their businesses from Loses to Profits.
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