For the last few years, the words Bonuses become very popular. So that we will try to dive in and found out everything connected with bonuses and compensation in Ukrainian IT-companies.
So what is bonuses?
In a nutshell, bonus pay is compensation that is over and above the amount of pay specified as a base salary or hourly rate of pay. Companies pay bonuses to employees for many reasons, for example:
- to thank and congratulate them on meeting and achieving specific goals which resulted in positive happenings for the organization.
- to attrack top talents to the company.
- or that’s what the market tells companies to do.
Some bonuses are distributed quarterly, others yearly. Some are a one-time thing, others are recurring. And of course, it depends on the role, level and kind of company you work for.
An annual bonus is usually based on overall company performance. So you may get a large or small bonus depending on how successful your department was during the year.
Also, there is a signing bonus, it is a one-time bonus provided when you sign on to a new role or move to a new city. Many companies might offer it when an employee is walking away from something better. Or in case of relocation and the company wants to cover some of the costs.
In addition, there is a referral bonus, is helps to encourage current employees to refer great candidates for jobs at their company. It helps to fill the positions quickly and hire really top talents.
Also, many companies pay bonuses or compensation to those who work additional hours or play an integral role in the company’s success in an unexpected way.
But still, we should remember that most of the bonuses are discretionary and addition to someone’s salary, and it is not obligatory for a company to provide them. And there’s no real federal law that states you have a right to a bonus. So that it depends only on company wish and profit.