{"id":15866,"date":"2024-08-07T11:52:00","date_gmt":"2024-08-07T11:52:00","guid":{"rendered":"https:\/\/www.brightmine.com\/uk\/?post_type=resources&#038;p=15866"},"modified":"2026-07-27T10:48:53","modified_gmt":"2026-07-27T10:48:53","slug":"how-to-implement-discretionary-bonus-scheme","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/uk\/resources\/total-rewards\/how-to-implement-discretionary-bonus-scheme\/","title":{"rendered":"How to implement and manage a discretionary bonus scheme"},"content":{"rendered":"\n<div class=\"wp-block-group alignwide has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-f85887e8 wp-block-group-is-layout-constrained\" style=\"border-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-929090b5 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:70%\">\n<p class=\"wp-block-paragraph\">By <strong><strong>Claire Birkinshaw<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Discretionary bonuses are a useful reward system as they can help to motivate and maintain staff. Indeed, in the financial sector, they are often much more important than basic salary. In other sectors of industry they can represent a significant enhancement to the basic package. However, as court decisions over the last few years have spelled out only too clearly, the use of the word &#8220;discretionary&#8221; is misleading.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sign up today to get:<\/h3>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">Eligibility requirements<\/li>\n\n\n\n<li class=\"\">Key performance conditions<\/li>\n\n\n\n<li class=\"\">Maternity and long-term sick leave<\/li>\n\n\n\n<li class=\"\">Managing the bonus scheme<\/li>\n\n\n\n<li class=\"\">Exercising discretion<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Want to see more?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For full access to <strong>How to implement and manage a discretionary bonus scheme<\/strong>, sign up to a HR and Compliance Centre subscription today.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link 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powerful people strategies, implement best practices and set your organisation up for a brighter future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Learn how our tools, resources and automation can empower you and your team.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/uk\/solutions\/?intcmp=cta|blog|solutions|learn-more\" style=\"border-radius:25px\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group lnrs-hide-block-on-mobile has-global-padding is-layout-constrained wp-container-core-group-is-layout-64c039dc wp-block-group-is-layout-constrained\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-bottom:0\">\n<hr class=\"wp-block-separator has-text-color has-secondary-gray-color has-alpha-channel-opacity has-secondary-gray-background-color has-background\" style=\"margin-top:10px;margin-bottom:10px\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Read more articles:<\/p>\n\n\n\n<div class=\"wp-block-query is-layout-flow wp-block-query-is-layout-flow\"><ul class=\"wp-block-post-template is-layout-flow wp-container-core-post-template-is-layout-a7dce961 wp-block-post-template-is-layout-flow\"><li class=\"wp-block-post post-22816 resources type-resources status-publish has-post-thumbnail hentry category-blogs topic-ai-in-hr topic-hr-future\">\n<h2 style=\"font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.192), 16px);line-height:1.3;text-decoration:underline;margin-top:10px;margin-bottom:10px;margin-left:0;margin-right:0\" class=\"has-link-color wp-elements-0b1b36f3c2dfa7682bfd13b67e3228a9 wp-block-post-title has-text-color has-primary-black-color\"><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/hr-strategy\/hr-future\/the-great-disconnect-ai-and-transparency-in-the-workplace\/\" target=\"_self\" >AI and transparency in the workplace: Employees can challenge decisions 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src=\"https:\/\/www.brightmine.com\/wp-content\/plugins\/lnrs-resources-filter\/assets\/images\/category-flag.svg\" alt=\"\" class=\"lnrs-resource-hub-widget__category_icon\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"lnrs-resource-hub-widget__category\">Blogs<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"title\" style=\"color: #00728B\"><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/hr-strategy\/hr-future\/the-great-disconnect-ai-and-transparency-in-the-workplace\/\">AI and transparency in the workplace: Employees can challenge decisions faster<\/a><\/h3>\n\t\t\t\t\t\t<p style=\"color: #000000\">AI and greater transparency are changing how quickly employees can identify, document and challenge inconsistent workplace decisions, creating &#8230;<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t<div class=\"lnrs-resource-hub-widget__resource\" style=\"background-color: 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url(https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2025\/10\/05090417\/web_feature_img_1200x627.webp);\"><\/div><\/a>\n\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__inner_content\">\n\t\t\t\t\t\t<div class=\"content-top\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__categories\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__category_wrapper\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"sync\" src=\"https:\/\/www.brightmine.com\/wp-content\/plugins\/lnrs-resources-filter\/assets\/images\/category-flag.svg\" alt=\"\" class=\"lnrs-resource-hub-widget__category_icon\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"lnrs-resource-hub-widget__category\">Reports<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"title\" style=\"color: #00728B\"><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/total-rewards\/pay-trends\/bonus-payments-2026-gaps-and-disparities\/\">Bonus payments 2026:\nWho gets what \u2013 and where the gaps persist<\/a><\/h3>\n\t\t\t\t\t\t<p style=\"color: #000000\">Ensure your bonuses are competitive, sustainable and equitable. Download our latest infographic and access the latest data and &#8230;<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\n<\/div>\n<\/section>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-bb56f56d wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-79174043 wp-block-group-is-layout-constrained\" style=\"border-radius:25px;margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\" id=\"h-topics-on-this-page\" style=\"font-style:normal;font-weight:500\">Topics on this page<\/h3>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-7387b849 wp-block-group-is-layout-flex\">\n\n<div class=\"taxonomy-topic has-link-color wp-elements-5ec59eb01c09ec2f1d84a6b36973ff83 wp-block-post-terms\"><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/hr-compliance\/pay-and-benefits-compliance\/\" rel=\"tag\">Pay and benefits compliance<\/a><span class=\"wp-block-post-terms__separator\">, <\/span><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/total-rewards\/\" rel=\"tag\">Total rewards<\/a><\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cararra-gray-color has-alpha-channel-opacity has-cararra-gray-background-color has-background is-style-wide\"\/>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-about-the-author\" style=\"font-style:normal;font-weight:500\">About the author<\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-a903a136 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100px\">\n<figure class=\"wp-block-image size-full is-resized has-custom-border is-style-rounded\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/01\/13144636\/speaker-avatar.webp\" alt=\"\" class=\"wp-image-14506\" style=\"border-radius:25px;object-fit:cover;width:100px;height:100px\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Claire Birkinshaw<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Claire Birkinshaw has worked at two of the top 10 London law firms, as a legal adviser to the Ministry of Defence, and as a legal information manager with Abbey Legal Protection.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discretionary bonus schemes can be an effective way to motivate staff and retain talent, but recent case law shows the risks of getting them wrong. This guide explains how to design, operate and exercise discretion in bonus schemes lawfully and fairly.<\/p>\n","protected":false},"author":71,"featured_media":15929,"comment_status":"closed","ping_status":"closed","template":"wp-custom-template-new-resources","categories":[12],"tags":[],"topic":[77,69],"class_list":["post-15866","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-guides-how-to","topic-pay-and-benefits-compliance","topic-total-rewards"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.3 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to implement and manage a discretionary bonus scheme | Brightmine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.brightmine.com\/uk\/resources\/total-rewards\/how-to-implement-discretionary-bonus-scheme\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to implement and manage a discretionary bonus scheme\" \/>\n<meta property=\"og:description\" content=\"Discretionary bonus schemes can be an effective way to motivate staff and retain talent, but recent case law shows the risks of getting them wrong. 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