what factors should be included. i want to included money collected/performance, as well as improvement, overall dedication (timely, absence, attitude, etc.)
2007-03-18 05:08:04 · 1 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Use a reduction in Days Sales Outstanding (DSO) - the time it takes to collect an account receivable. You can bae a portion of the bonus of reduction in DSO and a portion on the individual's attributes that you deem to be important - attendance, etc.
Keep in mind that in some states, bonuses are considered as "earned" income (attendance bonuses fall into this category.) This means they must be factored into overtime calculations - a neat trick since the bonus isn't usually earned until long after the OT has been paid. This makes finance departments crazy and lawyers rich - so check your local laws before implementing a performance-based bonus system.
2007-03-18 05:14:40 · answer #1 · answered by Mel 6 · 0⤊ 0⤋