A Fair Share of the profits – Everybody loves a bonus

VALENTINA LWIN-BAILEY

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Valentina Lwin-Bailey

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It’s that time of the year, when managers and employees engage in some necessary conversations: performance reviews, goals and KPIs and probably the most anticipated, bonus entitlements.

Our Great Place to Work TI survey trends show that, most organisations consistently struggle with employees’ perception of receiving a fair share of the profits. This should come as no surprise, since we all want more money and want a fair slice of the profits made as a result of our contributions.

The good news is that many of our Great Place To Work Certified companies and in particular, the best of the best get this right. Approximately 75% of employees in 2022 Aus Best Med and Large Workplaces and nearly 90% in small & micro-sized  organisations agree they get a fair share of organisation’s profits.

Here are some tips on what these great organisations are doing to enhance employees’ experience around bonus or profit share.

 

Clear Structure
  • Is it a percentage of annual profits, or fixed bonus pool?
  • What does any individual need to achieve to get a share of the profit/ to be entitled for a bonus? Is it a set amount for everyone? Or is it tied to performance?
  • If performance based, what are the criteria? How do individual, team and company’s performance affect the employee’s bonus amount?
  • If for a multi-national company, would regional and global performance impact on a local employee’s bonus pool?
  • If companies have share schemes, are they accessible by all, or are they different levels of entitlement based on tenure or seniority

 

Transparent Communication
  • Discuss the structure at the outset, typically during planning or goal setting session at the beginning of the business year
  • Make sure the bonus/profit share structure and related information is readily available to all employees throughout the year (i.e., intranet; Employee Handbook)
  • Inform organisation progress towards target at different times of the year
  • At year end, take time to sit down with the employee in a one-on-one conversation to
    explain how they’ve performed against the target and how that relates to the bonus amount

 

What if we don’t have profit share scheme?

Some in our certified  community including not-for-profits, community  organization and government agencies do not have profit share or bonus schemes. Such organisations can still win the trust of their employees by clearly articulating how are profits reinvested.

What % is dedicated into the community/customers they serve and for business sustainability and growth. Moreover, organisations should explain what is reserved for the employees’ benefits – by way of employee growth and development through learning and development, wellbeing benefits, staff amenities and facilities.

 

How do these relate to our Trust Index Survey statements?

I feel I receive a fair of the profit made by the organisation

  • 87% of employees in 2022 Aus Best – Micro agree
  • 86% of employees in 2022 Aus Best – Small agree
  • 74% of employees in 2022 Aus Best – Medium agree
  • 75% of employees in 2022 Aus Best – Large agree

 

Want to tell the world that your company has a great workplace culture? Find out how you can earn Great Place To Work Certification™ here.

 

VALENTINA LWIN-BAILEY

Valentina brings 25 years of experience in organisational development, people and culture, and teaching and training experience from across higher education, government and private sectors in Australia and Myanmar (Burma). In the past 15+ years, she has been focused on employee engagement, workplace culture, leadership development and strategic planning. Her recent HR leadership roles included heading up functional HR teams in large and complex organisations, including crisis management during the pandemic and political unrest. She exercises her passion for people development by teaching, mentoring and coaching young HR professionals in the areas of HR, management and career planning. Valentina is a strong advocate for full-person wellness, and achieves balance through yoga, outdoor activities, cooking and enjoys spending time with family and friends.

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Great Place To Work® Best Workplaces™ in Australia 2024 Evaluation Methodology

Great Place To Work determines the list using our proprietary For All methodology. To determine the Best Workplaces in Technology list, Great Place To Work analyses the survey responses of tens of thousands of employees from Great Place To Work Certified™ companies in the technology industry.

Our survey enables employees to share confidential quantitative and qualitative feedback about their organization’s culture by responding to 60 statements on a 5-point scale and answering two open-ended questions. Collectively, these statements describe a great employee experience, defined by high levels of trust, respect, credibility, fairness, pride, and camaraderie. In addition, companies provide organizational data like size, location, industry, demographics, roles, and levels. Great Place To Work measures the differences in survey responses across demographic groups and roles within each organization to assess both the quality and consistency of the employee experience.

Statements are weighted according to their relevance in describing the most important aspects of an equitable workplace. Survey data analysis and company-provided datapoints are then factored into a combined score to compare and rank the companies that create the most consistently positive experience for all employees in this industry.

To be considered for the list, companies must be Great Place To Work Certified™ and nominate as a company in the technology industry.

We require statistically significant survey results, review anomalies in responses, news, and financial performance, and investigate any employee reports of company incompliance with strict surveying rules to validate the integrity of the results and findings. 

Categories

These organisations’ assessment is based 100% on employee responses to the Trust Index survey.

  • Micro 10-29 Employees
  • Small 30-99 Employees
  • Medium 100-999 Employees
  • Large 1000+ Employees

Great Place To Work® Best Workplaces™ in Australia 2023 Evaluation Methodology

Great Place To Work determines the list using our proprietary For All methodology. To determine the Best Workplaces in Technology list, Great Place To Work analyses the survey responses of tens of thousands of employees from Great Place To Work Certified™ companies in the technology industry.

Our survey enables employees to share confidential quantitative and qualitative feedback about their organization’s culture by responding to 60 statements on a 5-point scale and answering two open-ended questions. Collectively, these statements describe a great employee experience, defined by high levels of trust, respect, credibility, fairness, pride, and camaraderie. In addition, companies provide organizational data like size, location, industry, demographics, roles, and levels. Great Place To Work measures the differences in survey responses across demographic groups and roles within each organization to assess both the quality and consistency of the employee experience.

Statements are weighted according to their relevance in describing the most important aspects of an equitable workplace. Survey data analysis and company-provided datapoints are then factored into a combined score to compare and rank the companies that create the most consistently positive experience for all employees in this industry.

To be considered for the list, companies must be Great Place To Work Certified™ and nominate as a company in the technology industry.

We require statistically significant survey results, review anomalies in responses, news, and financial performance, and investigate any employee reports of company incompliance with strict surveying rules to validate the integrity of the results and findings. 

Great Place To Work® Best Workplaces for Women™ List Methodology

The Best Workplaces for Women™list is determined using Great Place To Work’sFor All™methodology to evaluate hundreds of Certified™Great Place To Work®organisations across Australia.   

Data is based on over 40,000 employee survey responses from women in Great Place To Work® Certified™ organisations across Australia. 

The survey 

The survey enables employees to share confidential quantitative and qualitative feedback about their organisation’s culture by responding to 60 statements on a 5-point scale and answering two open-ended questions. 

Collectively, these statements describe a great employee experience, defined by high levels of trust, respect, credibility, fairness, pride, and camaraderie. In addition, companies provide organisational data like size, location, industry, and the number of women in the workforce and management positions. 

Considerations 

Great Place To Work analysed the gender balance of each workplace, how it compares to each company’s industry, and patterns in representation as women rise from front-line positions to executive/C-suite roles. 
Survey data analysis and women’s representation figures are then factored into a combined score to compare and rank the companies that create the most consistently positive experience and opportunities for all women, regardless of their role or demographic background.   

Eligibility   

To be considered for the list, companies must be Great Place To Work Certified™. Companies must also employ at least 50 women. We require statistically significant survey results, review anomalies in responses, and investigate any employee reports of company in compliance with strict surveying rules to validate the integrity of the results and findings. 

Please note this list is NOT ranked. 

Great Place To Work® Best Workplaces™ in Australia 2023 Evaluation Methodology

Great Place To Work, the global authority on workplace culture, determined the Best Workplaces™ Australia 2023 List by conducting annual workforce studies through our Trust Index Survey™ and Culture Management platform Emprising®, representing the voices of almost 50,000 employees across Australia.

Employees responded to over 60 survey questions describing the extent to which their organisation creates a great place to work For All™, meaning that the company empowers all individuals to reach their full human potential. Eighty-five percent of the evaluation is based on what employees report about their experiences of trust and reaching their full human potential as part of their organisation, no matter who they are or what they do. We analyse these experiences relative to each organisation’s size, workforce make up, and what’s typical in their industry and region. The remainder of the evaluation is an assessment of all employees’ daily experiences of the company’s values, people’s ability to contribute new ideas, and the effectiveness of their leaders to ensure they’re consistently experienced.

To ensure surveys truly represent all employees, we require enough people in each organisation to respond that results are accurate to a 95% confidence level and 5% margin of error or better. We review any anomalies in survey responses, news and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results.

 

Categories

These organisations’ assessment is based 100% on employee responses to the Trust Index survey.

For larger organisations with more than 100 employees, we also use our Culture Audit™ tool, asking organisations to share with us their practices, policies and programs to creating a great workplace For All™ and evaluating the approach they take.

Why do you say in one place your national list scoring is based on 85%/15% and in another place that it is 75%/25%?

We are explaining two different things:

1.  The criteria we evaluate

2.  Where the data comes from