As with all things in your field there is both an art and a science approach to such challenges. I assume you already used the “science” approach to the project by consulting with professional organizations/materials and conferring with your peers in the field.

In my view, the “artful” approach to your situation is the process you use to create your program. Bonus programs, like many other management projects (e.g. performance management systems, pay systems, recognition programs), are usually most effective when they are developed to fit the culture of your organization by the people most affected by such program. Start by finding out from your executive management what they want to reward in your organization. Some organizations reward the efforts of the team, others reward cost savings or revenue generation, others reward ingenuity and risk taking. Make sure you are clear on what behavior you are trying to reward. I would also find out what parameters/limitations you face with this project.

Once you know the goals, gather together some of the people that will grant bonuses and some that could be a recipient of a bonus. I think you will find that involving those stakeholders will make your job easier. They can help you identify concrete criteria that fit the work they do and the culture of your organization. They can also help you communicate the program and they will have buy-in to its success. My only hint is to make sure they know, from the beginning, the parameters and who makes the final decision.

Who knows, if you can effectively use the “best and the brightest” in your organization to help you with this program, you may move from being bonused out to being bonused yourself.

Get a card and bake a cake! I am always up for a celebration to recognize an employee’s success. Earning a college degree is quite an accomplishment, especially for a working adult. Congratulate her on graduating with a workplace celebration.

Now, about her requests, you are not obligated to give her a pay increase or change her job title. However, you mention adding to her job duties over time. It may be appropriate to stop and re-evaluate the job’s content. If she quit tomorrow, what background requirements would you seek in an applicant to successfully perform the job? How is someone in the Accounting Clerk position expected to contribute to the company’s business objectives? Ask your Human Resources Department, or engage the services of an objective compensation consultant, to evaluate the job’s content. A job evaluation helps determine how the job may have migrated from the original Accounting Clerk position. A job evaluation will also identify comparable positions’ prevailing salaries for your geographic area and industry. If the Accounting Clerk’s job has changed substantially, Human Resources or the consultant will most likely recommend assigning the job to a new salary range. This may mean more earning potential for the employee. A job evaluation can also identify common job titles used by employers.

Share your plan with Accounting Clerk to have her job evaluated and ask for her cooperation with the process. Let her know the company considers several factors when making pay and position change decisions such as present and future business needs, market conditions, the company’s ability to pay and how the position compares internally with others. A job evaluation will help determine if change in pay and title are appropriate. Also, tell her you support her accounting career aspirations and hope she sees long-term potential with your company. Should, at a future point, her interests and expectations outgrow the company’s needs, you would respect her decision to make a job change and hope to have the opportunity to make it a successful transition for everyone.