OTA
Discretionary Bonus Plan
A discretionary bonus short-term incentive plan is the oldest and simplest form of incentive, and involves an arbitrary decision, with a manner such as "we've had a good year", "Jones is a good bloke, he has put in the yards", and "let's give him a bonus".
The process is not communicated in advance, and has more of a "look back, feel proud" result rather than motivation to action.
Advantages - this model is simple and easy.
Disadvantages - this design is not a motivator; the discretionary bonus becomes considered an expected part of the remuneration structure, and there is a negative result in years where no bonus is paid.
Contact OTA to further discuss how a discretionary bonus short-term incentive could assist your organisation.
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ABN: 27 106 665 552
ABN: 27 106 665 552