Group bonus scheme
A group bonus scheme links a bonus pool to team performance and distributes it using an agreed basis, such as hours, basic pay or equal shares. It suits work where individual contributions are interdependent but can create free-rider concerns. Calculate the pool before allocating it and check eligibility and quality conditions. Team performance may also be affected by equipment, scheduling or demand beyond the employees’ control.
Worked example
A team earns a $1,200 pool shared in proportion to hours of 100, 80 and 60. The allocations are $500, $400 and $300.
Common mistake
Do not multiply the full pool by each employee’s hours without dividing by total eligible hours, or assume a team award must be split equally.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |