Bonuses
Bonuses
are one off payments that you can earn in
addition to your salary. Usually they are
linked to the performance/profits of the company.
Some companies offer 'guaranteed bonuses'
annually whilst others may award them depending
on your performance. Christmas time is when
it has become common for bonuses to be paid.
Share
Options
After
you have been with a company for a while you
may be offered the chance to buy shares at
a preferential rate. By owning a share in
the company employers hope that you will take
a more personal interest in its performance.
If the company is profitable and doing well
then your shares will be worth more should
you choose to sell them. Shares in large firms
also yield an annual dividend, the sum of
which depends upon how many shares you hold
and the net profit of the company.
Sometimes
there are restrictions placed upon when you
can sell the shares. For example you might
be given 100 shares a year, but can only sell
20 of these per year over a five-year period.
Some
new internet startup firms offer new employers
to have a chunk of their salary paid in the
form of shares, for example a job may pay
a salary of £20,000 but you may be offered
£17,000 and £3000 pounds worth of shares at
the current value. Employers should be wary
of this arrangement, because as quickly as
share values can increase…they can also
go down.
Commission
If
you are working in sales, you may be paid
commission on top of your basic salary. Basically
this means that for every sale you make you
take a percentage of the profit. For example
you may be expected to sell "£5,000 pounds
worth of advertising space a month but for
every £500 you sell over that target you will
receive 10% back as commission.
Companies
obviously use this as an incentive for sales
people to sell more…but naturally, as
your commission takings go up then so will
your targets!