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Bonus Programs for middle managers

Our software education company has grown from a startup to over 75 employees. We have a core team of 5-7 middle managers who typically manage a department of 5-10 team members. Our company is highly profitable and the working environment demands excellence.

What are the typical retention/end of year bonus programs that you have seen? Is there a standard 5%, 10%, 15% of base salary?

Any websites you'd recommend where I can look at comparables?


Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Tim, let me be the devil's advocate and hopefully you do NOT take this negatively. I am only commenting on this from a discussion point of view with the slight chance that I can influence ...well, maybe the right word is "challenge" the existing paradigms.

1. Can you say that you value your employees the same (level) as other companies value theirs?
2. Did the company get to this point by doing what other companies are doing? Is there anything stopping your company from setting the standard or "trailblazing"?

Here are some of my relevant positions on bonuses.
1. It depends on the company values and culture you want to establish. This includes financial rewards vis a vis performance. What percentage or dollar amount is the company willing to put on the table for those values/performance/loyalty(?).
2. It depends on the financial demands the Board (and market if you are a public company) sets. While this is somewhat true, The CEO can condition Board/market expectations (see Apple, Amazon, Starbucks, etc).
3. It depends on other retention/employee satisfaction initiatives that you have in the company. Ex. your salary rates maybe way above "industry", so the need for a higher than usual bonus is not that significant.

Now that I got that out of the way and hopefully made you at the very least reevaluate your approach and perspective.......bonus amounts/percentages vary widely. At the end of the day, it does not really matter if it is 5% or 50% or even 100%. It is what works for your company and your employees.

And yes you guessed it right, I am not a fan of "industry (other company) standards and/or practices" way of thinking.

Again, please do not take the comments negatively. BTW, great work on growing the company.


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