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CHAPTER V
EXAMPLE
MERIT BONUS PLAN INCLUDING
POTENTIAL YEAR END BONUS
EXAMPLE LETTER FROM COMPANY PRESIDENT TO EMPLOYEES UNDER THE PLAN
MONTHLY INDIVIDUAL MERIT BONUS
MONTHLY "MERIT"ä BONUS
DISTRIBUTION TALLY SHEET
POLICIES REGARDING MONTHLY "MERIT"ä
BONUS LINE ITEMS
GROUP YEAR END BONUS
A. SUMMARY OF GROUP YEAR END BONUS
PLAN
1. Purpose
2. Definitions
C. OVERVIEW OF HOW PLAN WORKS
D. EXAMPLES
1. Calculation Examples (using payroll as the
example)
2. Calculating Bonuses and/or Losses
a. Example of A Year Where a Bonus is Paid
b. What Happens if There is A Loss For The Year?
3. Goals of Plan
a. Budgeted Direct Labor Percentage
b. Quality Assurance
c. Work in Process Time
E. PRODUCTION AND SUGGESTION SCREENING COMMITTEE
1. Necessary Committees to Evaluate
Associate’s Ideas
a. Production Committee:
b. Screening Committee:
2. Sample Suggestions
YEAR END GROUP BONUS DISTRIBUTION TALLY SHEET
POLICIES REGARDING YEAR END GROUP BONUS
LINE ITEMS
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