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Bonus Pay Non-Negotiables: Three principles for designing a bonus program

Explore three core principles of bonuses and variable compensation that will help you design — or redesign — your company’s bonus program.

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An open booklet discussing the current state of enterprise incentive management, featuring text on effective performance management, transparency, and commitment, alongside an image of a woman working on a laptop.
  • Tariffs Broke a Lot of Bonus Goals. Discretion Patches Them for Executives, Not for Employees.

    16 June 2026

    Pay Governance describes how tariffs broke 2025-2026 incentive goals, and how boards use discretion to fix them. That works for executives. For employee bonus plans, discretion is the wrong tool — here is what to do instead.

    5–8 minutes
  • Benchmarking Tells You What to Pay. Transparency Tests Whether Your Bonus Plan Makes Sense.

    11 June 2026

    Gallagher makes the case for industry-targeted benchmarking and defensible, sector-aligned pay data in 2026. We push it one layer past the salary band: benchmarking sets your bonus target, but transparency tests whether the plan delivering it makes sense to the person earning it.

    5–7 minutes
  • When to Reset Incentive Goals—and When to Keep Them

    When to Reset Incentive Goals—and When to Keep Them

    9 June 2026

    As commodity prices continue to fluctuate wildly, experts are weighing in on what should trigger a bonus target reset and what shouldn’t.

    5–8 minutes
  • Quarterly Bonuses: Do they fix the short-term incentive pay problem?

    Quarterly Bonuses: Do they fix the short-term incentive pay problem?

    4 June 2026

    The timing of bonus payouts is a very visible part of your plan design. Here’s five things to consider before you change your payout schedule to quarterly.

    5–8 minutes
  • AI is Redefining Job Families Faster Than Bonus Plans Can Keep Up

    AI is Redefining Job Families Faster Than Bonus Plans Can Keep Up

    2 June 2026

    AI is re-shaping job descriptions in real time, while many bonus plans quietly assume jobs stay the same for a year. Here’s what to do about it.

    6–8 minutes
  • Flexible Goal-Setting Protects the Plan—if there is Line of Sight for Employees

    Flexible Goal-Setting Protects the Plan—if there is Line of Sight for Employees

    1 June 2026

    WTW just laid out five strategies for keeping incentive plans flexible in volatile markets — but will they work beyond the executive comp committee?

    5–8 minutes
  • If Your Bonus Plan is Broken, No Recognition Platform Will Save You

    If Your Bonus Plan is Broken, No Recognition Platform Will Save You

    5 May 2026

    Employee engagement tools depend on a strong compensation foundation. Even the most thoughtful engagement initiatives will falter if your bonus plans are broken.

    4–6 minutes
  • When ‘Target’ Becomes the Floor, You Don’t Really Have a Bonus Plan

    When ‘Target’ Becomes the Floor, You Don’t Really Have a Bonus Plan

    30 April 2026

    Here’s why “at or above target” is a sign your short-term incentive plan has stopped working — and how to recalibrate.

    5–8 minutes
  • When Base Pay Flattens, Your Bonus Plan Is Doing All the Work

    When Base Pay Flattens, Your Bonus Plan Is Doing All the Work

    28 April 2026

    New research finds that only 48% of organizations will tie pay increases to performance this year. Can you bonus program handle the extra stress?

    5–7 minutes
  • Changing a Bonus Goal Mid-Year Is Almost Always the Wrong Answer

    Changing a Bonus Goal Mid-Year Is Almost Always the Wrong Answer

    23 April 2026

    A closer look at the challenges of adjusting executive compensation goals mid-cycle while maintaining trust and flexibility in employee bonus plans.

    5–8 minutes
  • Rebalancing a Bonus Plan Is the Right Instinct. Here’s What It Misses.

    Rebalancing a Bonus Plan Is the Right Instinct. Here’s What It Misses.

    21 April 2026

    Instead of cutting bonus programs altogether, try rebalancing compensation strategies during economic uncertainty—like a financial portfolio.

    5–8 minutes
  • Incentive Pay in the News: Q1 2026 Roundup

    Incentive Pay in the News: Q1 2026 Roundup

    8 March 2026

    Employee expectations remain high amid economic uncertainties. And the best solution is “peanut butter raises”? Let’s get into it.

    3–5 minutes
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