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supply chain employee bonus

While all reputable employers pay their staff, some choose to do more. Many companies in the supply chain and logistics discipline motivate and incentivize their team by offering bonuses.

Bonuses can take many forms, including:

  • Sign-on bonuses
  • Daily, weekly, monthly, quarterly or yearly bonuses
  • Referral bonuses
  • Holiday bonuses
  • Individual or company-wide bonuses
  • Anniversary bonuses

Three Reasons to Establish an Employee Bonus Program

Companies in the supply chain and the logistics discipline can stand to gain from bonus programs. Here are the top three benefits you may enjoy by establishing a bonus program:

  1. Improved morale: When you provide bonuses, it’s a sign that you appreciate your team’s hard work. By demonstrating your appreciation, you can elevate the mood within your organization.
  2. Higher quality candidates: A bonus program can enable you to attract higher quality talent — something that’s essential in a candidate-driven vertical like supply chain and logistics.
  3. Greater success: By incentivizing your team to perform better and rewarding their achievements, you foster greater success on both individual and company-wide levels.

How to Calculate Bonuses for Employees

To establish a bonus program, you’ll need to determine how much bonus to award your employees. First, remember that you should view bonuses as synonymous with profit sharing. If your organization isn’t producing a profit, you may want to consider other methods for motivating and rewarding employees.

For organizations operating in the black, bonus calculation is generally a two-step process:

  1. Figure out the total amount you’ll distribute: Set aside a specific dollar amount for bonuses, or calculate a bonus pool to be a percentage of your profits. This bonus pool can fluctuate from year to year in concert with your company’s bottom line.
  2. Decide how you’ll divide that amount: Choose whether to distribute equally based on salary or individually based on contributions. It can be helpful to assign shares to each position, with each share representing a set percentage of the bonus pool. Each bonus is then determined by multiplying the combined total percentage of the position’s shares with the bonus pool total.

Work With Optimum Supply Chain Recruiters

Finding talent to fill your open positions in the supply chain and logistics discipline remains a challenge. You can rise to that challenge by choosing Optimum Supply Chain Recruiters to find qualified candidates for your available positions.

Get in touch with Optimum Supply Chain Recruiters to learn about our unique consultative approach to recruiting in this discipline.

Don Jacobson
Don Jacobson
Don Jacobson was born and raised in New York City, and graduated with a B.A. degree in Management from the City University of New York. For 10 years, Don managed Operations and Supply Chain departments for consumer products companies. He then turned his attention to supply chain recruiting and for the past 27 years, has specialized in recruiting and placing supply chain executives throughout North America. Don is certified by the National Association of Personnel Consultants. He was a Partner at Hunt Ltd., and more recently was the Founder and Managing Partner of LogiPros LLC, a logistics recruiting firm. Don is a regular contributor of topical human resource articles for DC Velocity magazine, the CSCMP Supply Chain Comment, and The WERCSheet, published by the Warehousing Education and Research Council (WERC). He is Past President of the NY/NJ/CT chapter of WERC

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