Question about bonuses

[Another Agents View]

Hoping for some advice / insight from some of you seasoned IT pros.

I'm currently negiotating a package for a contractor to transition from contract to a permanent role with a cleintco.

He wants permanent (I know you guys may not be sympathic & TBA I'd prefer he staid a contractor / revenue stream for me!) and they want him.

It's a new business stream for them and he'll be working as a senior tech consultant (pre-sales, design and delivery) so they are not experienced about how to reward him on bonuses....

Was wondering if any of you know what sort of bonuses the tech consultancies offer their employees e.g utilisation bonus and how they work?

Any insight greatly apreciated.

[craig1]

Last mid-sized tech company I worked with on setting up a new business unit created a bonus structure based on annual appraisals. A purely subjective appraisal on each employee that was moderated in a managers' meeting.

If company made a pre-tax profit:
Top half of bell-curve = 10% bonus
Top quarter of bell-curve = 15% with a +2% pay rise on top of normal
Top 5% = 25% with a +5% pay rise on top of normal

If company did not make a pre-tax profit:
Top quarter of bell-curve = 5% bonus
Top 5% = 15% with a +2% pay rise on top of normal

They did have a 42 hour week qualification on that, i.e. you had to have timesheeted over 42 hours per working week on average throughout the year to qualify, but they had to remove it on legal grounds after advice from a solicitor.

[Another Agents View]

Last mid-sized tech company I worked with on setting up a new business unit created a bonus structure based on annual appraisals. A purely subjective appraisal on each employee that was moderated in a managers' meeting.

If company made a pre-tax profit:
Top half of bell-curve = 10% bonus
Top quarter of bell-curve = 15% with a +2% pay rise on top of normal
Top 5% = 25% with a +5% pay rise on top of normal

If company did not make a pre-tax profit:
Top quarter of bell-curve = 5% bonus
Top 5% = 15% with a +2% pay rise on top of normal

They did have a 42 hour week qualification on that, i.e. you had to have timesheeted over 42 hours per working week on average throughout the year to qualify, but they had to remove it on legal grounds after advice from a solicitor.

Thanks for comment.
That utilisation expectation seems incredibly high!

[northernladuk]

It really depends on the size of the client co. If it is a medium sized company that is still owned by a single guy/family the bonus can be very high to encourage you to line his pockets further. If it is a large corporate it will be peanuts and get cut anyway.

Sorry for being vague but gotta know the situation first to give you an idea.

[craig1]

Thanks for comment.
That utilisation expectation seems incredibly high!

Such is the expectation of many mid-sized ambitious software houses! Better wages than many big companies, larger scope of the role but far harder expected working conditions.

They couldn't formally make hours above contract part of the bonus requirements but the unspoken assumption was that you'd be marked down for not "showing commitment" if you didn't work longer hours.

It reaffirmed my belief in contracting when I went home at 5pm every day while the wage slaves had another hour or two to work minimum and I took home double their salary for the same job.

[Another Agents View]

It really depends on the size of the client co. If it is a medium sized company that is still owned by a single guy/family the bonus can be very high to encourage you to line his pockets further. If it is a large corporate it will be peanuts and get cut anyway.

Sorry for being vague but gotta know the situation first to give you an idea.

Mid sized IT company with professional services arm. Professional services arm is growing and this new stream within PS will be a solution provider in cloud infrastructure.

Would be very keen to hear how other similar companies reward consultants / tech specialists who are involved in pre-sales as well as implementation / delivery