How to allocate bonuses - the 9 golden rules

How your bonus should be decided.

It's that time again, as bank executives have mostly locked in bonus pools, and managers decide how individuals should be rewarded for their efforts in 2014.

Here are 9 golden rules your boss should follow when allocating bonuses:

1. Don't worry about what other firms are doing

2. Differentiate - ensure that those who have performed the best are paid out the best

3. Put personal thoughts aside; pay on performance only. Don't play 'favorites'

4. Never give in to ultimatums or threats

5. Be consistent across all employee groups

6. Be as transparent as possible, so that you can clearly explain your decision in the event that you need to.

7. Forget about what was awarded to individuals in previous years - this is about 2013's performance

8. Be rational, not emotional

9. Don't court popularity

image: © Victor1558

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