The National Association of Manufacturers (NAM) announced today that it will be increasing bonuses for all its employees with a minimum of $100,000.
The minimum bonus for the 2017 calendar year is $100 per year.
The increase will be for all hourly employees at Allstate, but employees with multiple years of service will get bonus bonuses for the entire year.NAM says the bonus will be tied to the number of years of work experience and will be adjusted for inflation over the course of the next five years.
NAM’s bonus plan is based on a five-year formula: the base amount is $20,000, the number in increments of $1,000 will be $10,000 and so on.
According to the union, the formula is also very similar to the one used by the U.S. Department of Labor.
For example, if an Allstate employee with 12 years of experience earns $100 a year, they would get a $200 bonus for each $100 in earnings, while if they have an employee with 15 years of career experience earning $120 a year they would receive $250 in a three-year period.
A similar plan was introduced by the Department of Veterans Affairs in 2014, but it’s unclear if Allstate will follow suit.
Allstate has been the target of criticism from critics, who have said the bonus system rewards those who put in the most hours, regardless of their work history.
NAM president and CEO Mark W. Pincus has said that the bonus increases will help to offset the loss of employee morale.
Pincus added that the company has implemented a number of initiatives in order to help employees achieve higher pay.
“In 2017, we launched a new pay strategy that will improve employee pay, raise performance and improve the overall quality of life for employees, and will help us meet the challenge of our future workforce,” Pincs said in a statement.
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This article was written by Emily Estrin, the News Editor at FourFourTwo.