XYZ Industries

XYZ Industries

Internal Memorandum

DATE:

TO: The Mid-Level Managers/Executives and Above

FROM: The Human Resource Director

SUBJECT: Addition of Annual Performance-Based Bonuses

XYZ Industries, Inc. is excited to include annual performance-based bonuses in this year’s salaries and compensation plans. The management has commissioned the bonuses following the exemplary performance recorded by the sales department this financial year. As an institution, we recognize that the three-fold upsurge in sales achieved is primarily due to the employees’ commitment, loyalty, and extra input. Therefore, this reward is a well-deserved price that will serve to motivate all workers to double their contribution and effort in the future.

The performance bonus reviews will be assessed by the Compensation Committee and approved by the senior officers, President, and Chief Executive Officer. In particular, a target bonus (a fraction of the annual base pay) will be assigned to each eligible worker. Even though the company has met the set objectives, the Compensation Committee will specifically consider how much each manager has met their set individual goals when awarding the target bonus. A performance rating (annual) will be used to calculate the individual performance goals of each executive. This rating will specifically factor in things like the number of milestones completed (in terms of departmental sales) and the total hours each individual has worked. Most importantly, a 5% bonus will be given to top executives in addition to what mid-level managers will receive.

As a company, we understand that this bonus plan might not meet the expectations of everyone, especially those who feel that they might have unfairly been rewarded, considering they were on leave. Nonetheless, we will try to consider everyone in future plans. We believe this small token of appreciation will spark high levels of professionalism, commitment, and loyalty in the future.

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Memo 1: Positive Message

Assignment:

As the Human Resources Manager at XYZ Industries, Inc., it is your pleasure to announce the addition of annual performance-based bonuses for mid-level managers and above. These bonuses will require annual performance reviews to discern the amount of the bonus. Draft a memo explaining this scenario to this specific group of employees. The format of your memo tells your employees a lot about your sensitivity and professionalism. Since you do not want to upset any employees unnecessarily, you should also be conscious of your wording when explaining culturally-sensitive subjects. Pay particular attention to your memo’s margins, line spacing, font type and size, and placement of memo parts such as the addressees, subject line, and body.

Address the memo to all mid-level managers and above at your company.

Recommended Organization

Header: Begin your memo with the four standard memo heads (Date, To, From, Subject).

Body/Discussion: In the first paragraph of the body, start off with the good news. Memos do not begin with greetings or salutations. Explain what factors could have contributed to this new development (i.e. increased sales, raising stock price, etc.) and why the decision was made to reward employees with the surplus funds. The second paragraph is where you explain the new process that the employees can expect. Outline the way that reviews will be handled, and by whom. Feel free to be creative (yet somewhat realistic) when outlining how the performance scores will translate into bonuses (i.e. tier system, seniority, contribution value). In the third paragraph, be sure to validate any anticipated concerns employees may have about this adjustment. Explain the greater benefit in the long-term this decision provides and conclude your memo by indicating how the reader may contact you if he/she has any questions. In general, this section should be “short & sweet,” making sure that the employees know what is expected of them.