Team pools

A pool plan sets aside a bonus pool when the business hits its goals, then splits it across the people on the plan. It works well when results depend on the whole crew, not one person.

How it works

• Fund the pool from revenue, profit, margin, payroll, a fixed amount or a custom metric.
• Use a fixed percentage or tiered percentages.
• Pay from the whole amount or only the amount over target.
• Split evenly or by hours, ratings, tenure or role level.
• Add individual qualifiers so each person still has to meet their own bar.

Related

• Thresholds — Make sure the business wins before anything pays out.
• Qualifiers — Adjust payouts when key conditions aren't met.