We have had announced to us that the company it introducing a prp scheme for all employees, essentially 50% of the pot goes to all employees then 50% pro rata. It was annouced to everyone this afternoon and what can only be described as a mini riot ensued. A large number of shop floor claimed no fair and it should be a flat rate, there seemed to be no way to calm the situation, so what our MD thought would be a morale booster did in fact blow up in his face…What is the fairest way? (I by the way would percentage wise worse off but cash wise better).

i don't think there is a good way, you will get losers and they seem to be very vocal.

when you say prp, do you mean profit related or performance related?

Sorry should have said profit, (operating). I was just kind of suprised that they were offering to give people a bit of cash and they pretty much all kicked off that the managers would get more.?!

DO what our company do, divvy it up as they see fit with a letter telling us that, it is a private and confidential issue between the employer and the employee, and to realise that their colleagues may have different sums and if they that person needs to discuss it then do so with the management teeam

**** lucky to be getting a bonus i would say, assuming you make some profit 🙂

RS, you aint wrong… personally I don't really care as im pretty such the sums involved will be bugger all, I tried this line but bizarrely a lot of shop floor seem to think we lie about our profitability, which is strange as we are quite open about the companies general situation.

Given my understanding
50% of total pot split evenly across workforce
other 50% of pot split pro rata (assuming on salary – so higer salary gets more)
that sounds ok to me, it seems to try to get round the rather flawed % method employed by a depressinly large no of companies whee I worked.

The only alternative I can suggest is along the lines of where I once worked:
– 3 bonus targets
– level 1 – everybody got £500
– level 2 – everybody got £1000
– level 3 – everybody got £1000 plus 5% salary

Again, the method used appears to be ok to me.

So no one thinks its an essentially unfair scheme?

Ever bonus scheme I've ever been a part of is percentage based, and bully for your MD that its the same percentage across the board.

And most of mine have had a greater percentage the more senior you are. In my last firm I got upto 25%, whereas my number two's were on upto 15% and then next level 10%, then 5%.

What is this "bonus" of which you speak?

*Makes a mental note for the next time the public sector pensions-bashing thread comes up*

Yeah, that thought crossed my mind too. 👿 And on strike day.

In fairness this is in lieu of a payrise essentially to protect the company against a hike in fixed costs when things could still be a bit ropey……

Its a capitalist society there is no fair.

We had a bonus (also in lieu of a payrise) recently and everyone got a percentage of their take home, so O/T was included. I think that's fairly common, so your shop floor have got a pretty good deal. Personally I would have liked to see the bonus split equally so it made a big difference to the lower paid staff, but that's unlikely to happen.

MrGreedy, fyi

http://www.telegraph.co.uk/news/newstopics/politics/6874504/Civil-servants-paid-130-million-bonus-despite-Browns-attack-on-excess.html

also check out CSA, it's an organisation with an atrocious record, it's been paying it's staff bonuses.

My company has one, everyone gets the same % of salary. The % is based on how well the company beats the financial targets – fall short and no payout. We all got 20% for 2009 as it was a bumper year.

Your employees sound like whinging f***ers to me…

footflaps, couldn't possibly comment…..

Sounds more than reasonable to me, bunch of ingrates! Its more or less the norm that as you go up the ranks you'll tend to receive more – at the end of the day they will under normal circumstances be able to influence the performance of the company more.

Lucky to be offered anything in the current environment.

Working in the offices, I used to feel guilty when I got questioned by shop floor staff about our perceived astronomical salaries, bonuses, perks etc. Then realised that I was the one who'd given up 2 evenings a week & &3-£400 a year of my own money on college fees to get off the shop floor. Ten years on the same whingers I left behind are still there whinging.

The shop floor think bonus should be a flat rate, do they?

And the same for salary, yes? Everyone should get the same?

Back in the real world that is one of the most egalitarian bonus schemes I have heard of.

I love bonus schemes. I love trying to explain to someone that essentially all the things they think they do that are exceptional are, in fact, their job. I've only once ever had someone say, look i've done my job nothing more nothing less but i'll do some extra stuff next year. Everyone else seems to struggle with the concept that a bonus is for things over and above what that funny money you get every month pays you for 🙄

Sounds a fair enough scheme to me. Where I work they do things a bit more complicated. Whether a bonus is paid or not depends on meeting profit targets then your cut of that depends on your performance grading. There's a separate management bonus as well which is paid out depending on a few things including the result of an employee survey so if we all respond in a negative way the management don't get their additional bonus.

Last time I was in a straight-forward PRP scheme it was a privately run firm and shortly before the PRP calculations were done the MDs (brothers) each bought a £100k+ sports car as a company car and it meant the profit dipped below the PRP threshold – that wasn't popular when the details got leaked to the shop floor 😉