The main incentive for introducing turnover related pay is to give everyone the opportunity to increase earning potential in line with the results and performance of the company and to encourage collaboration across the different departments and therefore a unified approach to success.
In the 2020/21 financial year, 6% of company turnover above £3.4m will go into the “staff pot” and be split between staff. One big benefit is that there will be no cap on what is payable, irrespective of how high the results are.
6% will be distributed to employees as per conditions below.
- The turnover figure will be available to managers to cascade down to all employees on a monthly bonus.
- The basis of the turnover results will be the audited actual results for the relevant financial year (Oct-Sept).
- Bonus payments will be paid in October pay checks unless there is any delay in obtaining sign off from the auditors outside of the company’s control.
- For new starters, a bonus payment will only become payable on successful completion of a probation period and will be paid pro-rata on whole months completed following the probation period, ( e.g. start date March 5th with 3 month probation period then only 4 months bonus is applicable, June -Sept).
- The bonus will be paid pro rata based on 40 hours weekly work, i.e. 32 hours worked equates to 80% of the bonus payment.
- Attendance records may be reviewed which could result in a reduction to an individual’s bonus payment. Management discretion will apply to this rule.
- Should the turnover target not be achieved, then no bonus will be automatically payable, but directors may issue a discretionary bonus.
- The bonus scheme is discretionary and not contractual and may be changed in the future, however, any changes will be made in good faith and communicated accordingly.
- The scheme may be cancelled in the future if it does not achieve the ultimate objective.
- Bonuses are only paid to those individuals who are employed on day of payment, i.e. any staff that leave the company will no longer be eligible for a bonus.
- Bonuses will be deducted for any individual disciplinary action, such as verbal or written warnings or any poor behaviour or performance.