Link a Performance-based Bonus to a Performance Goal

 

Notes:
This article refers to the Goals feature in the Performance tab of the employee profile, which will be discontinued on the 31st of December 2022. By the same date, a new, improved Goals feature will be available to all customers with the Performance & Development package.

This article explains how to link a performance-based bonus to a performance-based goal.

Note Even though you can create more than one goal for a performance period, you can only create one performance-based bonus for a performance period.

 

Configure Bonus Distribution

This table provides detailed information about each of the three bonus distribution interval options that are available in Personio:

Bonus distribution interval Explanation Payout consequences (examples)
End of period Bonus payout during the selected bonus period

Monthly (April): Payout in April

Quarterly (Q3): Payout in September

Half-yearly (H1): Payout in June

Yearly (2018): Individual decision (payout in 2019)

After period Bonus payout after the selected bonus period

Monthly (April): Payout in May

Quarterly (Q3): Payout in October

Half-yearly (H1): Payout in July

Yearly (2018): Individual decision (payout in 2019)

Distributed evenly over period Bonus payout during the selected bonus period

Monthly (April): Payout in April

Quarterly (Q3): 1/3 in July, August, September

Half-yearly (H1): 1/6 from January - June

Yearly (2018): Individual decision (payout in 2019)

Note The General performance settings for the bonus payout become irrelevant when the interval is set to yearly. With yearly goals, you can decide in which specific month of the following year the bonus payment will be made. It is not possible to connect a goal with a custom interval to any bonus. The bonus interval must match the goal interval. It is not possible to customize a bonus interval.

 

To specify when employee bonuses are to be paid out, follow these steps:

  1. Go to Settings > Performance & Development > General.
  2. Next to General performance settings, click Edit.
  3. From the Bonus distribution drop-down menu, select the appropriate interval for paying the performance-based bonus from the three available options:
    ▶︎ at the end of the period
    ▶︎ after the period
    ▶︎ distributed evenly over the period
  4. To save the settings, click on Submit.

 

Set up a Performance-based Bonus

To activate a performance-based bonus that is automatically calculated based on goals, follow these steps:

  1. Go to the employee profile of the relevant employee for whom you wish to activate a performance-based bonus.
  2. Click on the Salary tab.
  3. Under Salary components, click Edit.
  4. Under Bonus, click Add bonus
  5. Then select the option Goal bonus percentage.

    employee_list-salary-bonus-add_bonus_en-us.png
  6. In the Maximum bonus (per period) field, enter the maximum bonus amount for the desired period.
    Note: For the automatic bonus linking to work, the chosen goal interval and the bonus period must match.
  7. From the Bonus period drop-down menu, select the appropriate interval.
  8. Enter the date from which the bonus should take effect. Alternatively, you can select the date on the date picker.
  9. Click Submit.

For automated mapping of the goals created with the bonus payout, the following points should be noted:

  • Bonus period: The Valid from date must be set to no later than the first day of the bonus period. 
  • Calendar year: Intervals always refer to a calendar year; specific individual settings are not possible.

 

Examples

Selected interval Example Bonus period
monthly March 2018 01.03.-31.03.2018
quarterly Q2 2018 01.04.-30.06.2018
half-yearly H1 2018 01.01.-30.06.2018
yearly 2018 01.01.-31.12.2018

 

Confirm the Payout of a Performance-based Bonus

To pay out a performance-based bonus that is mapped to a goal, the payment needs to be confirmed. Depending on your settings, this occurs at the end of the bonus period, after the period, or evenly distributed over the period once achievements have been added to the goal from which a percentage can be derived for the payout.

The bonus amount is then displayed in the employee profile of the relevant employee, in the Salary tab under the Bonus column.

To confirm the bonus payout of a performance-based bonus, follow these steps:

  1. Go to the employee profile of the relevant employee for whom you wish to confirm the performance-based bonus payout.
  2. Click on the Salary tab.
  3. In the column Bonus, click on the warning-sign.pngWarning sign. The payout amount calculated based on the achieved goal is displayed.
  4. To confirm the payment, click on Confirm. If you want to change the amount to be paid out, click into the bonus field and manually adjust, then click on Confirm. employee-profile-salary-bonus-confirm_en-us.png

 

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