How to reward employees?

Which employees deserve the bonus? How to determine the type and amount of the bonus? Should the bonus be tied to a specific time period? How to tie the bonus to the fulfillment of a certain result of work? How to measure whether rewarding has an effect on the company's business? What are the tax effects of rewarding and are there any tax reliefs?

If such questions arise in your business or you want to implement / revise the reward system, our team is at your disposal, through the following course of services:

  • Supporting companies in defining goals for employees, as well as the types and characteristics of goals
  • Support to companies in introducing a system of employee evaluation, ie their evaluation on the basis of achieved goals
  • Analysis of various reward possibilities and establishment of a win-win bonus system
  • Model development and calculation of bonus systems

Common types of bonuses

  • Regular periodic bonus as a certain percentage of annual salaries
  • Stimulation to achieve targeted KPIs
  • Loyalty incetive bonus - represents the amount that will be paid once to the director / employee at a future agreed moment if he remains employed in the company. This bonus is contracted when the director / employee is expected to achieve certain results in a certain period, which will enable the company a better position in relation to the competition or preparation for a more successful sale of capital.
  • Exit bonus - represents the amount that will be paid once to the director in case of successful sale of capital / change of ownership of the company, if he is employed on a certain day in the future;
  • Profit sharing - unlike previous bonuses, this is a statutory category. The share in the profit is determined by the employment contract or the decision of the employer, it is conditioned by the decision of the general meeting of the company and there is no fiscal treatment of the salary.
  • Acquisition of shares or stakes in the company - a very attractive type of bonus given the tax exemption and the new legal framework for the acquisition of reserved stakes

If you have any questions feel free to contact one of the WTS experts.