Incentive Pay

Siemens employees get big post-recession bonus

12/20/2010

Now that the worst of the economic crisis seems to have passed, Berlin, Germany-based electronics and powerhouse Siemens in December said thanks to its employees worldwide with “special payment” bonuses totaling $430 million. Nonmanagement employees in the United States received almost $100 million.

When setting pay and bonus plans, take both federal and Minnesota laws into account

12/09/2010

A recent state Supreme Court decision highlights one of the unique problems facing employers: While a pay practice may be valid under state law, it may be illegal under federal law. To ensure they’re in full compliance, employers must be prepared to change their pay practices to conform with the most restrictive law.

Bonus for exempt workers: What’s the best way?

11/25/2010

Q. Everyone has been working extra hard this year, especially our exempt salaried employees. We want to reward them with extra pay. Can we pay them overtime if they put in more than, say, 50 hours in a week? Or is it better to offer a one-time bonus? I don’t want to affect their exempt status.

Ban all supervisor comments about workers’ ages

11/19/2010

Here’s something to include in your regular supervisory training sessions: Remind everyone that they should banish from their vocabularies any slang or colorful terminology that hints at age discrimination. “Ageisms” can make legitimate business decisions like altered compensation plans, new job duties and other necessary changes look like pretexts for getting rid of older workers.

Prepare for payroll confusion in new year unless Congress takes action

11/11/2010

Unless a lame duck Congress acts by Dec. 31 to keep some of the so-called “Bush tax cuts,” tax rates will increase on Jan. 1, 2011, as pre-2001 rates go back into effect. That’s bound to upset employees who will find themselves with less take-home pay.

4 steps for implementing a variable pay program

10/26/2010

Making variable pay work requires lots of interaction throughout the organization before, during and after implementation. As the business unit most likely in charge of implementation, it’s up to HR to make sure that happens. Here’s how to do it.

Bonuses bounce back, but bar is set higher

10/06/2010

The days of organizations handing out bonuses like Halloween candy seem to be over. While employers have returned to awarding bonuses in 2010, they’re attaching more strings than ever and are more likely to look at “hard” financial performance metrics when making variable pay decisions.

Taking FMLA leave may rule out performance bonus

10/01/2010

Under the right circumstances, employers that pay discretionary bonuses based on actual performance don’t have to make the extra payments to employees on FMLA leave. Thus, a discretionary bonus based on performance during each quarter may not have to be paid if the employee didn’t work.

OK to pay commissions on a flat-rate basis–it won’t violate FLSA commission exemption

09/24/2010

For years, the DOL has argued that commissions must be based on a percentage of sales in order to be valid. But now the 3rd Circuit has approved a different form of commissioned sales—one in which employees are paid based not on the total amount of the sale, but on other factors such as whether the sale was made on an outgoing sales call or an incoming one.

Ensure fair distribution of work opportunities