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      Bonus Potential and Bonus earned

      How to manage Bonus potential and Bonus earned for an Employee

      The Compensation and Benefits (Comps and Bens) feature in HRLocker allows you to manage various aspects of employee compensation, bonuses, benefits, and related documents. 

      Bonus Management in HRLocker

      The Bonus Management section in the HRLocker directory helps you set and track both Bonus Potential and Bonus Earned for employees, ensuring that compensation structures are accurately recorded and managed.

      Bonus Potential

      The Bonus Potential section allows you to set expectations for future bonuses. It includes the following fields:

      • Effective Date:
        • The date when the bonus potential becomes effective. This ensures the bonus potential is tied to a specific period.
      • Currency:
        • The currency in which the bonus is denominated (e.g., USD, EUR). This is important for international employees or organizations operating in multiple countries.
      • Value:
        • The actual value of the potential bonus, specifying the expected amount an employee may earn based on performance or other criteria.
      • Changed By:
        • Tracks the manager who made the change to the bonus potential. This provides an audit trail for any adjustments to compensation plans.
      • Notes:
        • Any additional information or context regarding the bonus potential can be entered here. For instance, if the bonus is tied to performance milestones or specific KPIs, that information can be documented.

      Bonus Earned

      Once a bonus has been awarded, it is tracked under the Bonus Earned section. This records the actual bonuses employees have received.

      • Payment ID:
        • A unique identifier for the bonus payment. This Payment ID helps track payments in HRLocker payroll reports.
      • Cost Centre:
        • If payroll reporting is set up, you can link the bonus to specific cost centres.
      • Currency:
        • The currency in which the bonus was paid.
      • Value:
        • The actual value of the earned bonus, reflecting the amount that has been awarded to the employee.
      • Effective Date:
        • The date when the bonus was earned, ensuring that the payment is attributed to the correct payroll period.
      • Notes:
        • Any additional information or context related to the earned bonus. For example, reasons for the bonus award (performance, project completion, etc.) can be documented here.

      Key Benefits of the Compensation and Benefits Feature

      • Track Bonuses Efficiently: Keep a detailed record of both potential and earned bonuses, ensuring accurate and up-to-date records for all employees.
      • Link to Payroll Reports: HRLocker payroll reports allows you to track bonuses through Payment IDs, ensuring that compensation is accurately reflected.
      • Historical Records: Each bonus entry includes who made the change and when it became effective, providing a full audit trail for tracking compensation changes.
      • Notes for Context: Both bonus potential and earned bonuses include space for notes, allowing you to document performance criteria or reasons for bonuses.

      By using the Comps and Bens feature in HRLocker, organizations can manage employee compensation more effectively, ensuring transparency, compliance, and streamlined payroll processing.