Bonus objectives
You can link incentive compensation with goals that are tracked using Goal Management. For example, you can link incentive compensation to whether a resource completes a performance goal.
Bonus objectives are created for a bonus period. They can be created directly in Compensation, or they can be created in Goal Management and attached to a bonus period in Compensation. Depending on the bonus objective pay component setup, the resource’s manager, the resource, or both can create a bonus objective. The amount that a resource is paid for attaining a goal may be based on a flat rate. Or, the amount may be a percentage of the resource’s target incentive defined in Compensation.
Bonus objective goals can be aligned with organizational goals.
Percent step for bonus objective
This type of table determines the payout based on a step system. Payout is determined based on a range of percent completion values from a goal. Attainments are entered on employee goals as percent complete. For example:
| Attainment range | Payout rate |
|---|---|
| From 90% - 94.9% | 50% |
| From 95% - 97.9% | 75% |
| From 98% - 99.9% | 90% |
| From 100% | 100% |
A goal with completion of less than 90 percent results in no payout.
Percent step with rating for bonus objective
This type of table determines the payout based on a step system. Payout is determined based on a range of percent completion values from a goal. This determination is in addition to a rating that is given on the goal. For example:
| Attainment range | Rating | Payout rate |
|---|---|---|
| From 90% - 94.9% | 1 | 5.0% |
| From 95% - 97.9% | 1 | 6.0% |
| From 98% - 99.9% | 1 | 7.0% |
| From 100% | 1 | 8.0% |
| From 90% - 94.9% | 2 | 5.5% |
| From 95% - 97.9% | 2 | 6.5% |
| From 98% - 99.9% | 2 | 7.5% |
| From 100% | 2 | 8.5% |
A goal with completion of less than 90 percent results in no payout, regardless of rating.