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Rewarding staff is one of the most effective ways to boost morale, drive performance, and retain key talent — but for many small business owners, the idea of bonuses can feel financially daunting. The good news? A well-structured bonus scheme doesn’t have to break the bank. At Martin & Company we believe that by thinking strategically, you can implement a bonus system that’s motivating for your team and manageable for your business.

Link Bonuses to Business Goals

Bonuses should be earned, not expected. The most effective schemes are tied to clear, measurable goals — whether that’s hitting sales targets, reducing errors, increasing customer satisfaction, or improving productivity. Aligning rewards with business objectives ensures your bonus budget is being used to drive the outcomes that matter most.

Use Tiered or Scaled Bonuses

Instead of a flat amount, consider a tiered system based on performance thresholds. For example, reaching 90% of a target might earn a base bonus, while exceeding 110% could unlock a higher reward. This creates an incentive for staff to push beyond the minimum, while keeping your costs predictable.

Consider Non-Cash Incentives

Bonuses don’t always have to come in the form of cash. Extra annual leave days, flexible working arrangements, vouchers, or team experiences can often have just as much impact — sometimes more. These types of perks are often more cost-effective and can foster stronger team engagement and loyalty.

Make It Fair and Transparent

A good bonus scheme is clear, consistent, and fair. Staff should understand exactly what they need to achieve and how their bonus is calculated. Transparency builds trust, and trust builds motivation.

Plan and Budget for It

Bonuses should never come as a surprise — to you or your accountant. Set aside funds in advance and include potential bonus payouts in your annual budgeting process. This ensures that when the time comes, you’re not scrambling to meet commitments.

Celebrate the Wins

When bonuses are awarded, celebrate them openly. A simple announcement or team gathering can amplify the positive effect, making employees feel valued and recognised.

Bonuses are more than just an expense — they’re an investment in your people. With careful planning, you can build a system that motivates your team, aligns with your business goals, and stays within budget. Everyone wins.

If you would like to discuss your business needs Call Martin & Company on 021 422 7240 or email info@martinandcompany.ie

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