Q
Dear Workforce:
What is a standard percentage that companies tend to allocate to bonuses and how much do employees receive as a percent of base salary?
— Uzma Siddiqui, HR manager, Pakcom Limited
A
Dear Uzma:
The allocation percentage varies greatly depending on industry and employee group. This percentage can be a factor of various performance measures and is generally only reported for top management.
Top Management | Avg. Bonus Pool |
As a Percentage of Net Profits after Taxes | 12.7% |
As a Percentage of Total Revenues | 3.8% |
As a Percentage of the Total of Base Salaries | 21.3% |
| Percentage received a bonus in 1999 | Average paid (as a percent of base salary) |
Top Management | 68% | 35.1% |
Middle Management | 46% | 13.4% |
Supervisory Management | 29% | 8.7% |
Professional and Scientific Personnel | 27% | 7.9% |
Technical and Skilled Personnel | 18% | 5.8% |
Data reported above is all industries combined.
SOURCE: Salary.com, Needham, MA, February 10, 2000.
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