KPIs and Bonuses

I’ve finally got round to setting up a series of bonuses for the software developers working with me. I’ve been meaning to do this for a while, but I didn’t have the means to make it work objectively and I didn’t want it to be subject to my being in a good or bad mood.

So now, every month we measure a number of factors in the developer’s daily routine. These factors are then collated at the end of the month and reduced to a score out of 10. If you get 7 or higher then you get a bonus for the month.

I asked the team how much a meal for two costs at a decent local restaurant where they live. They all responded with $30-$40. So I set the bonus at $50. I think that’s a pretty good reward for helping me and my clients out.

Take action: Find out what’s important to your business and reward your staff for achieving it. Not annually, but monthly, as that way it stays front of mind.

Rahoul Baruah

Rahoul Baruah

Rubyist since 1.8.6. Freelancer since 2007, dedicated to building incredible, low-cost, bespoke software for tiny businesses. Also CTO at Collabor8Online.
Leeds, England