Workforce.com

IDear Workforce-I How Much to Pay in Bonuses

March 8, 2000
Q

Dear Workforce:

What is a standard percentage that companies tend to allocate to bonuses and how much do employees receive as a percent of base salary?
-- Uzma Siddiqui, HR manager, Pakcom Limited

 

A

Dear Uzma:

The allocation percentage varies greatly depending on industry and employee group. This percentage can be a factor of various performance measures and is generally only reported for top management.

 

 Top Management

Avg. Bonus Pool

As a Percentage of Net Profits after Taxes

12.7%

As a Percentage of Total Revenues

3.8%

As a Percentage of the Total of Base Salaries

21.3%

 

 

Percentage received a bonus in 1999

Average paid (as a percent of base salary)

Top Management

68%

35.1%

Middle Management

46%

13.4%

Supervisory Management

29%

8.7%

Professional and Scientific Personnel

27%

7.9%

Technical and Skilled Personnel

18%

5.8%

Data reported above is all industries combined.

 SOURCE: Salary.com, Needham, MA, February 10, 2000.

E-mail your Dear Workforce questions to Online Editor Todd Raphael at raphaelt@workforceonline.com, along with your name, title, organization and location. Unless you state otherwise, your identifying info may be used on Workforce.com and in Workforce magazine. We can't guarantee we'll be able to answer every question.