Definition: A monetary payment made to an employee over and above their
standard salary or compensation package
Bonuses are one of the ways employers reward their employees for
a job well done. And offering regular, significant bonuses is a way
to keep your best people from looking elsewhere for a job.
Bonuses are usually determined as a percentage of annual salary,
though giving all employees the same monetary bonus is also an
option. Much depends on your corporate philosophy and goals. A
growing number of employers are reducing salaries and increasing
the portion of compensation that's performance-based, such as
bonuses. Through this approach, companies can more directly and
immediately reward outstanding achievement. And many firms are
basing bonuses on the performance of not just the employee but the
company as well in order to reward both personal and team
accomplishments.