STRATEGIC MANAGMENT

in 2011 this will end soon. How about achievement of profit and sales targets set by your office? The answer to this question is important, because it will usually be very decisive answer your next question: So, how about year-end bonus will you receive?

Bonuses. Ah, a word that is short but very awaited by workers who for 12 full months have been working hard, delivering the best work for the company. After the sweat shed and all the energy spread, its fair if the management gives back a decent return in the form of a big bonus.

Indeed, the bonus is indeed one of the coolest tricks to retain the best talents. Bonuses are also one mechanism for profit sharing that has been achieved by the company. Bonus is the magic word that would make the phrase "our best asset is our great employees" find the most real sense (and not just merely lips service).

In December of that cheerful morning, let's take a moment to calculate how much bonus you deserve.

The most commonly used to distribute the bonus is to allocate a certain percentage of net profits for employee bonuses. What percentage is appropriate? No exact figures here. Usually companies allocate 10% of net profit for its employees bonuses, although many are passing out bonuses only 5% of net profit (reason: that's got my company, so it's up to me for bonus.Doh !!).

I think, 10% (of net profit) is the minimum that should be distributed as a bonus. Example: there is one company in the field of finance that last year a net profit of 500 billion, and then adopted a policy of dividing its 10% (or 50 billion) to its employees. Once calculated, every employee would get an average bonus of 5 times salary (really bad).

The percentage method would be nice if that office where you work have a large enough scale, so as to produce a greater net profit (say at least 100 billion / year). If a small company (it is so, many employees), and net profit of only $ 10 billion, then the cake to be shared as a bonus would be smaller (and shared by many employees as well).

On the other hand, there are also some companies that are very aggressive in giving bonuses. This is because they use the strategy: wage standards, but very big bonus. In other words, the average salary of a given firm is not so legit, and then it is compensated with a fantastic bonus.

Example: there are two of my clients that implement the above strategy. The average salary of their managers may be only 12 million / month (not too high to measure manager). But at the end of the year, usually they give a bonus of up to 10 times the salary (phew).

So next week, the managers will receive a cash bonus of $ 120 million's (and then busy-busy can simply unplug it to Singapore or Hong Kong to celebrate the new year. Gosh. They say: Hey, we have "WORDS" : Work Hard. Play Hard).lol

In practice not many sweet stories like the above. Most companies may only provide 2.5% of net profits for employee bonuses, even many who do not give at all (NAH !).

I myself was rather surprised to see many companies are so stingy in sharing bonuses. Because once again, the bonus is a magic word that would make the phrase "synergy and unity" to get the true meaning.

Without an adequate bonus (as a sign of genuine profit sharing), then words like "Together We grow our business" or "we are the best" and other blah-blah, just a slogan that will be full of bullshit. The slogan sweet it would just be propaganda that "bogus" - that will only make business owners get richer, while the employees remain Ramanujan in misery.

However, do not be sad friend. Life should be continued with full optimism. Let us toast warm coffee to celebrate this misery. :) GBU