Objective-based bonus: preparing and sending to payroll

An objective can carry a bonus: an amount planned for 100% achievement, paid in proportion to the actual achievement rate. This article explains how to prepare the bonus on the objective, send it to payroll, follow what happens to it and who can see the amount. It is for HR, managers, payroll managers and administrators.

Before you start #

• The Objective-based bonus — Create + KPI + distribution permission (payroll section of the role matrix), at the Execute level, lets you enter the bonus amount and send the objective to payroll. By default it is granted to administrators, payroll managers, managers and HR.
• You also need to see the person’s Targets tab: the Objective permission, at the Access level to send to payroll and at the Execute level to edit the objective. The Payroll manager role does not hold this permission by default: grant it if that role does the sending.
• You can neither set nor send your own bonus.
• The objective must belong to a cycle and a contract: an objective created from the Targets tab is attached to the contract shown in the profile header.

Preparing the bonus on the objective #

The bonus is set in the objective window, when creating it (+ New Objective) or later (the row’s pencil, Edit Objective). Two fields describe it.

Bonus distribution says when the bonus will be paid. The period is that of the objective’s cycle.

Bonus at 100% is the amount paid if the objective is 100% achieved. The Currency field next to it is read-only: the bonus is always in the employee’s currency, that of their salary, otherwise of their office, sub-company, company or platform. The bonus paid will be this amount multiplied by the achievement rate, capped at 100%, and frozen when it is sent to payroll.

Without the bonus permission, the Bonus at 100% field does not appear; an amount already set is shown read-only to those allowed to see it (see below). The distribution, however, can be set with the Objective permission at the Execute level alone.

Sending the objective to payroll #

An objective is usually sent after its period, once its key results are up to date.

1. Open the employee’s Targets tab. The Transmit to payroll icon (a banknote) appears on the row of an objective whose distribution is chosen and which has not yet been sent.
2. Click the icon. The Transmit to payroll window shows the calculated preview: Achievement rate (with “(capped at 100%)” where relevant), Bonus at 100%, Bonus paid and the list of Instalments (payroll month and amount).
3. Check the instalments: an instalment falling in a month that has already passed, or in a month whose payroll is already approved, is moved to the first payroll month still open; several instalments moved to the same month are added together.
4. Click Confirm transmission. By confirming, you approve the amount shown.

If the key results changed between opening the preview and confirming, the transmission is refused and the preview reloads: check the new amount and confirm again. If the achievement rate gives a zero bonus, the window says “At this rate, no bonus will be paid.” and offers no confirmation.

When the transmission is not possible #

The preview then shows a reason instead of the amounts:

What happens next #

Two workflows, set up by an administrator in Settings › Manage Employees › Workflows, decide what follows.

• Objective transmission to payroll (inactive by default). Inactive: the bonus is created as soon as you confirm (“Objective transmitted to payroll: the bonus is created.”) and the row carries the Sent to payroll badge, followed by the rate used. Active: a request goes to the person’s manager (“Transmission request sent for approval.”) and the row carries the Transmission pending approval badge. Accepted in Workflows › Performance, the request creates the bonus on the rate frozen when it was made; rejected, it releases the objective without creating anything.
• The bonus approval workflow, which applies to all bonuses. Active: the created bonus awaits approval and the row shows Bonus pending approval, then Bonus approved or Bonus rejected. Inactive: the bonus is payable straight away on the planned instalments.

Once sent, or while the transmission request is pending, the objective is frozen: neither it nor its key results can be edited any more, and it can no longer be deleted. The achievement rate used for the bonus is the one at confirmation; it no longer changes.

The “Objective-linked bonus” card in the dossier #

Choose a cycle at the top of the Performance screen, then open the Dossier tab: the Objective-linked bonus card gives the estimated total “of an envelope of” the sum of the bonuses at 100%, and the detail per objective (achievement rate and amount). It states that this is an estimate: payroll applies its own rounding, pro-rating and payment schedule. If no bonus is defined over the period, it says so: “No objective-linked bonus is defined for this employee over this period.”

Who can see the amount #

Good to know #

• An objective can only be sent once: a second transmission is refused.
• The currency cannot be chosen: if no currency is set for the employee (salary, office, sub-company, company or platform), the form says so; have it filled in before setting the bonus.
• Key result weights affect the achievement rate, and therefore the bonus: check them before sending (see Setting and tracking objectives (OKRs)).
• An objective whose cycle is closed can still be sent: only editing it is blocked.