I take a lot of pride in how everything we do at RustyBrick is tracked through a custom built workflow manager. Not only does our system provide detailed project management, task management, billing solutions, version control, proposal management and more – it also is used to help guide us for the year end bonuses.
We track so much data through our system that we are able to build out simple reports with cool dials to see how well an employee is producing at any given time. Of course, we do not base the bonus solely on those data points, but they do provide a good guide for us to work off of. And typically, they are pretty representative of our subjective value of each employee throughout the year.
I won’t tell you what data values we use in the formula, but I can tell you it takes into account dozens of metrics. Those metrics are categorized into about 15 or so groups. We then normalize those figures on a five point scale.
We base the bonus based on that five point scale, we associate a percentage to each value throughout the five point scale and then multiple the percentage to give our employees a bonus at the end of the year. I provide the check and a print out of the detailed performance review in an envelop and encourage the employees to discuss it with me after they have reviewed it.
One thing that we debated internally here at RustyBrick was the decision to show the data to the employees in real time as they want to see it and if so, how much. We don’t want them to freak out by being in the yellow zone, when all it is, is a current snap shot of data that might not be complete at the moment. We opted (I pushed for it) to show one single dial of overall performance, I make it clear to the employees that this number is not finalized until the end of the year. Yes, we do give RustyPoints as part of the end of the year bonus that can increase or decrease the employee’s score.
That is a little insight into how RustyBrick’s bonus plan works. If you want all the details, you will have to work for us to get it.