This article explains how to link a goal-based salary bonus to a goal.
Overview
In Personio, you have the option to integrate salary bonuses with employee performance, rewarding employees according to their achievements. You can do so by linking goals to goal-based salary bonuses. Once the link between a goal and a bonus is established, Personio automatically calculates the bonus payout based on the progress made on the goal.
The functionality is as follows:
- You configure the bonus distribution.
- You create a goal for an employee.
- You create a goal bonus for the same employee. You match the bonus period with the goal's time frame. This allows Personio to link the bonus to the goal.
- Over time, you (or the employee) update the goal's progress.
- When the payout is due to happen, Personio suggests the correct amount, based on the progress made on the goal. You can view the payout and confirm it in the salary tab of the employee profile.
These four steps are explained in detail below.
Tips
▶︎ The order in which you create goals and bonuses is not relevant. Personio will link them as long as they apply to the same period of time.
▶︎ You can create a bonus and a goal set in the past and link them, if necessary.
Step 1: Configure bonus distribution
In your account, navigate to Settings > Performance & Development > Performance & Development > General and click on Edit next to General performance settings. Choose the interval for paying performance-based bonuses. The following options are available:
- End of period
- After period
- Distribute evenly over period
After the bonus distribution is configured, you can link a goal to a performance-based bonus.
Step 2: Create a goal
To create and configure a performance goal, see Configure goals and subgoals in the Performance & Development area. During configuration:
- Take note of the Time frame and Period you select for the goal. You will need this information in step 2.
- Create at least one subgoal to correctly track progress. If you create more than one subgoal, you can enable custom weights, and choose how each subgoal will contribute to the bonus payout.
Step 2: Create a goal bonus and link it to the goal
To create a goal bonus for an employee, see the relative section in Create and manage bonus payments. Personio automatically links a bonus to a goal if both apply to the same period of time. For this reason, when configuring the bonus you need to remember the following:
- The Bonus period needs to match the goal's Time frame. For example, a monthly bonus can only be linked to a monthly goal.
- Under Change effective from, the date you select must be equal to the first day of the goal's Period.
The following table shows a few examples of how you can configure these options:
| Bonus period | Goal time frame | Goal period | Bonus change effective from |
| Monthly | Month | March 2022 | March 1, 2022 |
| Quarterly | Quarter | April – June 2022 | April 1, 2022 |
| Half-yearly | Half-year | January – June 2022 | January 1, 2022 |
| Yearly | Year | 2022 | January 1, 2022 |
Note You can link only one goal to a bonus period.
Step 3: Update the goal's progress
To learn how to update the goal's progress, see Manage goals and subgoals in the Performance & Development area.
Step 4: Confirm the bonus payout
Depending on your settings, the bonus payout occurs at the end of the bonus period, after the period, or is evenly distributed over the period.
When the payout is activated, you need to manually confirm it in the Bonus column of the Salary table in the employee profile.