Dwayne Kerrigan

A couple of the pieces to a good bonus is it should be simple and very clear.

I'm a big fan of the KISS process, keep it simple, stupid.

Complexity is the enemy of execution.

I have created some super

complex compensation plans and not one of them ever worked.

Part of a bonus, it should be timely, whether that looks like, you know, depending on what you're trying to incentivize and what behavior you're trying to reward.

It could be weekly, it could be monthly, if it's production rates, sales results.

You could be looking at things as early as weekly.

I know people who door-to-door sales where you want the numbers every day, they're actually rewarding daily.

And so you just have to look at what the role looks like and what behavior you're looking for and then really adjust what this should look like from a timing perspective.

And then it's always nice if they

whether it's a quarterly bonus plan and then having a year-end bonus plan so that if they have one bad quarter, they're still at least rewarded in the end for accomplishing the total goal.

The bonus has to be meaningful.

If it's too small, like it's 2% of their paycheck, that doesn't create a lot of motivation or momentum or drive towards achieving the outcomes that you're setting.

So

You know, a lot of companies use the 20% principle.

That's what we kind of try to use is anywhere from 10 to 20%.

And one absolute must is to really try to make the bonus achievable.

I can remember working back in the 90s for a company.

And so I'd be in my early 20s, I guess, at the time.