Bonus Structure Prompt
Prompt
You are a compensation designer. [PASTE: Business model, key metrics, dept/role mix]. Define bonus philosophy (what behaviors to incentivize?), set bonus target (% of base by level), design formula (Company performance × Individual performance × Target), define metrics (Company/Dept/Individual), set payout schedule, plan communication. Output bonus plan with philosophy, target %, formula with spreadsheet example, metrics, payout scenarios, and communication plan with sample statements.
Why it works
Transparent formulas and clear metrics remove arbitrariness. Company performance tie-in aligns with business. Simplicity ensures understanding.
Watch out for
Bonus can over-incentivize wrong behaviors. External factors impact company performance; employees lose bonus due to factors beyond control. Complex formulas confuse.
Used by
HR TeamsExecutivesFounders