Employment Agreement:Performance Bonus Cancel The title field is required!

1. Dustin Riley

   

   8 posts
   
   8/15/2017 12:08 PM

   I searched the forum, but am hoping for a fresh discussion.
   
   I'm looking for some guidance and ideas. My employment agreement will be due for renewal next spring. My Committee Chair has opened discussions to assure that I am as happy as the membership is. Throughout my career, I've been very fortunate to have aligned myself with great role models/employers. I typically take the approach that if I put my head down, attempt to exceed expectations and put the facility first...I'll be rewarded accordingly. So far this has held true and I've been treated fairly. As I review my current agreement, the one area I would like to address is a performance bonus. I currently do not receive any type of bonus. I'd like to propose that the new agreement have a performance bonus defined.
   
   Here's where I'm hoping some of you can assist. I'm looking for suggestions/recommendations for structuring a FAIR performance bonus program. A program that is achievable, yet not roll eyes by current or future Board of Directors. I'm not looking to get greedy or ask for anything obscene. However, if the golf course conditioning exceeds expectations, membership satisfaction is high and the budget is managed successfully, then an extra reward should not be out of the possibility.
   
   I would prefer that this bonus program not be influenced by budget evaluation. My position is to develop and execute a comprehensive budget that meets the Club's playing standards. However, every year is different and I would not want a personal gain to influence what's best for the golf course.
   
   If you have a performance bonus program, would you mind sharing the program's criteria? If you could, is there a better approach to defining a fair bonus program. Any thoughts or other experiences I should consider as I ponder this.
   
   Thank you very much for any input.

   
   
   
   
2. Clay Putnam

   

   33 posts
   
   8/15/2017 8:08 PM

   Dustin,
   
   Performance bonuses can be tricky for, among others, the reasons you outlined. As it relates to the budget metric, I suggest that portion of the bonus to be achieved if you come in at or below budget. This gives you and the board peace of mind that the appropriate resources are applied to the golf course. Additionally, some golf facilities will tie the bonus to the overall performance of the golf course (clubhouse, F&B, golf shop, etc). I would strongly negotiate that your bonus is only associated with your department. That way a poorly managed department will not affect you. Of course other metrics may apply such as course conditioning, membership satisfaction surveys, and the like.
   
   Good luck!

   
   
   
   
3. Corey Eastwood

   

   80 posts
   
   8/16/2017 11:08 AM

   You have to be careful with this one. Do any of the other department heads get a bonus. How about the GM? In this current environment I would leave it alone.

   
   Corey Eastwood CGCS, Stockton Golf & CC, Retired
   
   
4. Tommy Witt

   

   5 posts
   
   8/16/2017 11:08 AM

   I have always tried to structure my bonuses that relate to items that are realistic, measurable and attainable. Budget management is only one aspect of that and I try to spend my allocated dollars and give my employers the best conditions possible for my budget amount. At times I have had various bonuses tied to safety, developing and implementing communication mediums for our members and club leaders, teamwork and willingness to help other departments, working relationship with the golf shop, rounds of guest play, lack of turnover in my department, etc. Good luck

   
   
   
   
5. James Schmid

   

   1 posts
   
   8/16/2017 1:08 PM

   I would consider leaving the budget out entirely. When I get my annual review I also agree to a set of goals for the next year, most of which are developed by me. Many of the goals are basic items that we may already be succeeding at. Things like: improve member communication by sending out updates each month, Work to reduce employee injuries through more frequent (biweekly) safety meetings, and PPE sign off sheets, blah blah blah. Complete Audubon certification. Have greens within target stimp meter reading range 90% of days throughout the season.
   
   These types of things may work as bonus criteria, because either you accomplish them or you don't. They are scheduled, planned, and budgeted for, and not reliant on weather, cost cutting, or other factors that are out of your control.
   
   If you thoughtfully establish goals that are achievable that will truly help move your department in a direction that improves member satisfaction, or some other business metric that is measurable, why not use those as bonus criteria.
   
   i also establish an annual water use target that is understood to be affected by weather.
   
   I'd also second what corey said

   
   
   
   
6. Anthony Nysse

   

   1 posts
   
   8/17/2017 4:08 AM

   I think bonus's should be a gift from the club, not a reward for doing a,b,c and d. Doing a,b,c and d is your job, and completing the expectations that the owner/members have for you. You will be rewarded if you 1. produce the conditions they expect. 2. continue to go above and beyond and 3. stay within budgetary guidelines.

   
   
   
   
7. Andy Jorgensen

   

   1 posts
   
   8/17/2017 7:08 AM

   I agree with Tony. A bonus should not be for meeting expectation. And, sometimes I see bonuses not being paid due to the goals being to subjective. Course conditions is one....
   
   However, I think their can easily be benchmarks that can pay bonuses out. For instance, growth in rounds, memberships, etc....is measurable and achievable. The Superintendent plays a role in this by reducing closures, providing great playing conditions, speed of a round, etc...
   
   Budget goals, water usage goals, safety goals, etc....are all items set by the club. Reduce safety incidents, receive a bonus.

   
   
   
   
8. James Smith

   

   112 posts
   
   8/26/2017 5:08 AM

   In my opinion I would leave out Bonus's. I know they sound great and everything but working your butt off one year and then not getting one will leave a bad taste in your mouth. this can happen due to the economy, nature or whatever. the course goes through a tough time where you'r called to work even more but it makes less money. I've seen this happen before.
   
   Why not just settle for getting paid great for a great job, well done. Basically all a bonus is (besides the money), is a big pat on the back, "Attaboy". Not asking for one does not mean that you cannot mention it when negotiating, like after you agree to terms of a contract telling them that you will not refuse a bonus for an exceptional year if it was offered.
   
   At my club I would be happy with a simple cost of living increase every year.