Don't tie bonuses to individual contributions. Individuals will work to meet their individual KPIs/metrics often to the detriment of the organisation. If ever

Don't tie bonuses to individual contributions. Individuals will work to meet their individual KPIs/metrics often to the detriment of the organisation. If every employee gets a bonus based on the organisational performance then there is a greater incentive for team work and cooperation within the organisation. I previously worked in a company with this policy. It meant the receptionist got the same bonus as the Principal Engineers. That policy might make some people unhappy if they think they deserve more compensation because they are more educated / smarter / experienced in a specialty. The thing is, the admin ans support staff worked hard to make the place run smoothly. The engineers were almost completely unburdened with flight, accommodation or training bookings. IT equipment was procured and commissioned in days, not weeks/months. If someone was roadblocked, the organisation worked to remove the roadblock. It was the best company I have ever worked for. Sadly, the company was acquired and the cooperative culture died after a few years. Other places I have worked are in contrast much more mercenary. Individual performance is measured and used to determine compensation and promotion. Individuals and internal teams actively compete with each other resulting in significant inefficiency. Internal politics dominate business making decisions. You can still measure performance against KPIs but not tie it to individual compensation. Instead use the metrics to analyse where there might be opportunities for improving efficiency through restructuring / training.