Bonuses can be a great motivator when tied to results – your law firm’s or corporate legal department’s, the employee’s, or those of a particular work group. The type of bonuses a firm offers will depend on its needs and goals.

Annual Bonuses
These bonuses are yearly payments to all eligible employees, based on the firm’s results, individual performance or a combination of factors.

Signing Bonuses
Awarded when an employee signs on with a firm, this type of bonus is typically used to attract top talent in exceptionally competitive industries or individuals with expertise in thriving practices areas. Generally, employees must stay with a firm a certain amount of time in order to qualify for this bonus.

Incentive Programs
Incentive programs reward superior performance of an individual or a group. One typical incentive program might provide attorneys, paralegals and support staff within a department a payment based on the successful outcome of a case.

Spot Bonuses
Spot bonuses are awarded in response to superior performance. Workers receive the bonus at the time of or immediately after the action that earned the reward.

Retention Bonuses
These payments persuade key people to stay with your firm, often amid a highly competitive employment market. For example, they might be used to retain attorneys or paralegals who are being recruited by other law firms or companies.

• They’re results-oriented. Employees must accomplish an objective to receive a bonus.
• They’re fair. The rules for bonuses are clear and equitably enforced.
• They’re competitive. The program rewards extra effort and superior performance.

Bonuses can be a strong motivator for your staff. They serve the dual purpose of encouraging employees to go the extra mile and honoring those who do.