If employees don't get their bonus, it creates anger and hostility. Go for frequency Entitlement forms of profit sharing can be changed to achieve the company's goals. First, the reward must be timely. It is hard for people to relate a reward to an activity that results in recognition 11 months later. Changing an annual bonus program to a quarterly bonus will help people understand the relationship between their work and the reward.
Clarity is important Clear goals are the second attribute of a motivating profit-sharing program.
These goals must be clearly communicated to everyone prior to the measurement period. The simplest example is to set the goal for a measurement at the end of a quarter. For example, if the company achieves X level of profitability, a bonus of Y will be paid out. Although this example improves on the year-end entitlement bonus program, it too has weaknesses. Many employees don't understand how profit is measured and suspect profit can be manipulated.