I am a principal owner and managing partner of a small architectural firm of 22 employees, we have been in business since 1982 and are a general practice firm. Firm bonuses are given across the board and for the performance of the entire firm, not individuals or on individual projects. Based on productivity and profitability, we typically give two bonuses a year besides other benefits (SEP/IRA, group health insurance, hollidays, vacation, sick leave, etc.). Bonuses are given in the summer and before Thanksgiving for a Christmas bonus. These semiannual bonuses total around 5% - 10% of an employee's salary annually. They are completely discretionary and not part of a guaranteed salary package but in 28 years we have not missed any. The bonuses are greatly appreciated by our staff, but I can tell you the SEP/IRA is by far considered the most important contribution by the employees. The firm typically contributes 11% of the annual payroll to each employees core account through a brokerage account I manage; once the annual contribution is made to the core accounts, it is their asset to manage.
We believe the incentive of firm-wide bonuses keeps the team spirit alive and helps eliminate inter-employee problems.
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Richard Bundy AIA
President
Bundy, Young, Sims & Potter, Inc.
Wichita Falls TX
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