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They are customarily offered after the completion of projects or at the end of fiscal quarters or years. Performance bonuses may be doled out to individuals, teams, departments, or to the company-wide staff.
A reward bonus may be either a one-time offer or a periodic payment. While reward bonuses are usually given in cash, they sometimes take the form of stock compensation , gift cards, time off, holiday turkeys, or simple verbal expressions of appreciation.
Examples of reward bonuses include annual bonuses , spot bonus awards, and milestone bonuses. Workers who reach longevity milestones—for example, 10 years of employment with a given firm—may be recognized with additional compensation.
Some businesses build bonus structures into employee contracts, where any profits earned during a fiscal year will be shared amongst the employees. In most cases, C-suite executives are awarded larger bonuses than lower-level employees.
While bonuses are traditionally issued to high-performing, profit-generating employees, some companies opt to issue bonuses to lower-performing employees as well, even though businesses that do this tend to grow more slowly and generate less money.
Some businesses resort to distributing across-the-board bonuses in an effort to quell jealousies and employee backlash. After all, it's easier for management to pay bonuses to everyone than to explain to inadequate performers why they were denied.
Furthermore, it can be difficult for an employer to accurately assess their employees' performance success. For example, employees who fail to make their activity quotas may be very hard workers.
However, their performance may be hampered by any number of conditions out of their control, such as unavoidable production delays or an economic downturn.
Companies are increasingly replacing raises with bonuses —a trend that vexes many employees. While employers can keep wage increases low by pledging to fill pay gaps with bonuses, they are under no obligation to follow through.
Because employers pay bonuses on a discretionary basis, they may keep their fixed costs low by withholding bonuses during slow years or recessionary periods.
A bonus is a gift to reward performance, paid either by a private employer or by a government: a bonus based on salary; a soldiers' bonus.
A bounty is a public aid or reward offered to stimulate interest in a specific purpose or undertaking and to encourage performance: a bounty for killing wolves.
A premium is usually something additional given as an inducement to buy, produce, or the like: a premium received with a magazine subscription.
See also present 2. Words related to bonus premium , prize , gift , perk , gratuity , benefit , bounty , dividend , reward , gravy , goody , tip , ice , commission , plus , honorarium , frosting , fringe benefit , golden parachute , hand-out.
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