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How effective are bonus schemes in professional services firms? - Benjamin Viney

BDO has recently undertaken a survey of 200 individuals across more than 170 firms to assess how effective bonus and recognition schemes are in professional services firms.  A selection of the findings are set out as follows:  

  • Only 10% of participants think that their firm’s bonus scheme is ‘very effective’, whilst 26% think they are either ‘not particularly effective’ or they don’t know.
  • 60% express doubt as to whether employees think the bonus scheme is fair.
  • 44% acknowledge that the bonus scheme leads to undesired behaviours.
  • 67% express doubt as to how well performance management systems support and inform whether people should achieve a bonus.  
  • 38% of respondents said that if there was one thing they could change it would be more clarity and transparency in the bonus scheme.

Whilst each firm will have its own particular challenges depending on history, size, personalities, governance arrangements and (above all) culture there is a growing imperative in the current economic climate to address these challenges and to ensure that bonuses are fair and perceived as such.  And although there is not necessarily always a ‘right answer’ it does not mean that there is no ‘wrong answer’!

If you would like a copy of the report please email me at benjamin.viney@bdo.co.uk

22 December 2012

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Benjamin Viney

Telephone: 020 7893 3460 Email Benjamin

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