When business is bad and profits are down, the odds that employees will receive bonuses diminishes.  However, there are ways to keep employees motivated when bonuses are not going to materialize.  Fortune magazine featured 3 perspectives (Nov. 24, 2008):

• Jim Weddle, CEO and Managing Partner, Edward Jones: When bonuses are not being paid, you must eliminate the surprise and tell them as early as you can why they won;t receive full bonuses, or bonuses at all.  Remind them that the alternative to cutting bonuses is laying people off.  Don't forget to reinforce with people that their efforts are appreciated.
• Laura Sejen, Global Director, Strategic Awards, Watson Wyatt: Don't cut bonuses unless you must.  When the pool is lessoned, make sure you give a disproportionate amount to those who have contributed to whatever success you did achieve.  Prepare managers with talking points to market your decision.  Consider a recognition program that gives spot bonuses based on special performance.
• Paul Amos II, President and COO, Aflac: Before you cut bonuses, see where else you can cut costs first.  Announce your decision as early as you can, and especially before people begin to count on their anticipated bonuses for holiday shopping or other events.