We restructured the bonus scheme and resolved chronic absenteeism
25.09.2025
An IT company had a problem with its employee bonus structure. Each employee had monthly performance targets to meet, but once the threshold was crossed, everyone received a bonus of identical value — regardless of how much they exceeded it. This was demotivating and led employees to do nothing beyond the minimum required.
A second problem was that once the bonus threshold was reached, employees began taking sick leave en masse — typically short absences of a few days, often commencing before a long weekend, and usually involving the same individuals each time.
The company approached us for a proposal for a bonus scheme that would reward those who contributed more, not merely those who exceeded the minimum threshold, and for mechanisms to address the pattern of recurring monthly absences.
What we did?
- We introduced provisions into the bonus regulations making the bonus conditional on the completion of additional client-related work. As a result, the bonus depended not only on achieving the threshold, but also on additional contributions during the month.
- Making additional work a prerequisite for the bonus automatically put an end to the pattern of recurring absences. Sales teams began to take a genuine interest in going the extra mile for clients.
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