Look up Bonus or bonus in Wiktionary, the free dictionary. This disambiguation page lists articles associated with the title Bonus. If an internal link led you here, you may wish to change the link to point directly to the intended article. What Is Bonus Pay and Why Bonus an Employer Pay It to Employees?
What Is a Bonus and Why Might an Employer Pay Them to Employees? Used effectively, it helps employees feel recognized and rewarded. Find out how employers can effectively bonus employees. Employers have the opportunity to distribute bonus pay randomly as the company can afford to pay employees a bonus or the amount of the bonus pay can be specified by a contract. Companies pay bonuses to employees to thank and congratulate them on meeting and achieving specific goals.
Meeting these goals resulted in positive happenings for the organization, its employees, and its customers. Senior executives, in senior roles especially, may have contracts that require the company to pay out bonuses. While employees might wish that executive bonus payments were tied to performance results, this is not always the case. Contracted bonus pay is not common outside of the executive suite. Many companies offer bonuses to people below the executive level as well, although this practice is rare. These bonuses are based on many different factors, but many companies base them on three things. Personal performance: Employees are rated based on how they met, didn’t meet or exceeded the goals set by their management.