Bonus Calculation Rules
  • 01 Mar 2023
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Bonus Calculation Rules

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Article summary

The bonus calculation rules define how the bonus amounts are calculated during the performance review

Follow these steps to set up bonus calculation rules:

  1. Go to Settings > Settings and Configuration > Compensation.
  2. Click Bonuses in the left panel and click Edit next to the Bonus Calculation Rules setting name on the Advanced tab.
  3. The Bonus Calculation Rules list will open in spreadsheet view where you can directly edit the information you need.
  4. Alternatively, click Compensation > Ranges and Grades > Grades. Create a job grade or click the Details link next to the grade name to open the Grade Profile and click the Add button in the Bonus Calculation Rules section. This will open the bonus calculation rule details form.
  5. Enter the rule name into the Title field.
  6. Enter the target bonus percent into the Target Bonus Percent field, which is the minimal bonus percent an employee will get for meeting the requirements during performance review. If an employee performs better than required, the bonus amount is prorated depending on the performance review scores.
  7. Enter the maximum bonus percent into the Max Bonus Percent field, which is the maximum bonus percent an employee might get for performing better than expected during a performance review.
  8. Select the grades this calculation rule will apply to in the Grades field or select the appropriate check boxes in the drop-down list in the Grades column in spreadsheet view.
  9. If the rule is country-specific, select the country this rule will apply to from the drop-down list in the Country field.
  10. Click Save.

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