Q: We’ve had a production bonus program here for several years, and it was nice to have that extra money each month. Last year, the owners remodeled the farrowing house and nurseries — and then they changed the bonus program. Now, we have to have better numbers to get the same amount of bonus pay. How is this fair to us?”
A: Paying a production bonus is an employee benefit; it is not an automatic that every business offers. A bonus is designed to present a challenge and a financial incentive as a reward. An effective bonus system is fair to everyone, easy to understand and promotes the operation’s key production practices.
Reviewed on an annual basis.
Paid only to employees in good standing with the company and who are performing at a satisfactory level.
Paid quarterly rather than monthly.
Easy to understand.
Related directly to the production areas on which the employee has a direct impact.
Designed with clear, written rules for how the bonus numbers are calculated.
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