Introduction
Compensation is an important part of the work of any organization. It helps to motivate employees and ensure they understand that their work is recognized. Thus, merit pay is a system rewarding high-performing employees to ensure they are ready to continue cooperation and achieve new goals (Valentine et al., 2019). Bonuses, as part of merit pay, can help to show the company’s recognition of its workers’ success and encourage them to move forward. Moreover, bonuses might be more financially feasible compared to traditional merit pay raises (Dessler, 2019). For this reason, annual or quarterly bonuses should be viewed as a way to motivate a Tech Support Specialist in the case.
Annual and Quarterly Bonuses
Annual bonuses are a type of payment provided to employees once a year, usually when the fiscal year ends (Dessler, 2019). It is based on the overall performance of a specialist during a year and his/her ability to meet specific criteria introduced by the company’s management. A quarterly bonus implies another scheme of providing workers with rewards. They are paid every 2 and a half months when the fiscal quarter ends (Jones & George, 2018). For this reason, the decision whether to offer this bonus depends on an individual’s performance during this quarter. At the same time, both annual and quarterly bonuses are part of the companies’ reward strategies, and the choice of the scheme depends on the firm’s current needs and its approach to working with human resources.
Annual Bonus Implementation
Implementation of an annual bonus requires specific actions. First of all, it is vital to introduce the timeline for paying rewards (Dessler, 2019). It will help employees measure their performance independently and expect payments. It is recommended to pay annual bonuses within the first month of the new year. Moreover, the fixed size of the bonus regarding the salary should be determined. For this case, it can be a $2000 payment for a tech support specialist as part of his/her salary, constituting around $28,500 – 58,500. Finally, introducing an annual bonus should be supported by defining clear criteria for employees to understand whether they can expect a reward.
Criteria
The criteria should be introduced regarding the specialist’s major responsibilities and duties. First, he/she should respond to 85% of callouts in a timely fashion during the year. Additionally, it is vital to test and evaluate at least 4 technologies during a year as part of the company’s evolution. A specialist should also analyze up to 90% of call logs to guarantee that all problematic issues are found. Another criterion is solving 90% of hardware and software faults to maintain the 90% efficiency of computer networks and systems. These criteria are vital as they mean the specialist meets the main demands to his/her position and ensures the stable firm’s work.
Furthermore, the tech specialist should maintain positive relations with 90% of clients to ensure they want to continue using the firm’s services. Another critical factor is performing timely electrical safety checks on the company’s computer equipment in 95% of cases as the basis for the company’s stable functioning. A specialist should also introduce clear reports about current issues and configure software and hardware. In such a way, meeting these criteria at the end of the year will ensure that a specialist will be provided with a bonus. The introduced checklist is feasible, relevant, and achievable as all aspects are linked to the primary duties and responsibilities of a worker.
Quarterly Bonus Implementation
Implementation of a quarterly bonus also requires specific planning, timeline, and reward criteria. Thus, the payments should be provided every 2 and half months during the following periods: April, July, October, and January. It means that employees will have more chances to acquire a certain reward because of their effective work and will be more motivated to work hard. Thus, the size of the bonus will be fixed and comprise about 1% of the salary or $500 for a quarter. It is also vital to establish clear criteria to ensure specialists realize what they should do to be rewarded.
Criteria
The criteria for quarterly bonuses are similar to the annual bonus as they are linked to the specialist’s duties. Thus, tech support should maintain 95% or higher efficiency of computer networks and systems. At least one new technology should be tested and evaluated during a quarter as part of the improvement process. 95% or more of call logs should be evaluated to discover and address problematic issues. A specialist should also resolve 95% of hardware and software faults to maintain 95% efficiency of computer networks and systems.
The specialist should also maintain positive relations with 95% or 100% of clients to ensure high satisfaction levels. Moreover, it is vital to perform timely electrical safety checks on the existing equipment in 100% of cases to ensure it works stably. All problematic issues should be timely reported and managed. An employee should also install and configure the hardware in 100% of cases to respond to 95% of callouts. Thus, the criteria are feasible and relevant, meaning that a specialist who performs his/her functions at a high level can meet them and will be provided with a quarterly bonus.
Comparison
In such a way, comparing the plans for implementing discussed bonus plans, it is vital to admit that the criteria for quarterly rewards are stricter. It is explained by the fact that a shorter period of time is evaluated, while in annual schemes, the specialist has a chance for mistakes because of the more extended period (Dessler, 2019). At the same time, establishing clear criteria helps employees acknowledge their success and focus on improving problematic areas. Although annual bonuses are higher to motivate specialists, quarterly ones are regular and can encourage individuals to monitor their performance to meet existing requirements for their work (Dessler, 2019).
Conclusion
Altogether, the implementation of both plans requires introducing fixed payment periods and bonus sizes. Considering the requirements of specialists, the same criteria should be offered as they come from duties and responsibilities. Generally, demands for quarterly bonuses are stricter because a shorter period is selected for the evaluation. However, they can be more motivating for specialists because of the chance to earn more money during different periods. Under these conditions, it is possible to recommend using quarterly bonuses as the main approach to merit pay in the company.
References
Dessler, G. (2019). Human resource management Dessler, G. (2019). Human resource management (16th ed.). Pearson.
Jones, G., & George, J. (2018). Essentials of contemporary management (8th ed.). McGraw Hill.
Valentine, S., Meglich, P., Mathis, R., & Jackson, J. (2019). Human resource management (16th ed.). Cengage Learning.