: When to Give Bonus Pay to Employees
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(411 Words)
Bonus pay is a common inclusion of compensation in many fields. There are different occasions and reasons why you might choose to give one or more of your employees such pay.
During the holidays
A vast number of companies choose to give bonus pay to their employees during the holiday season. It can be considered the company’s gift to them. A lot of people have extra expenses around the holidays to buy gifts, travel, entertain, etc. and this extra money can come in very handy. It is also a time of giving.
At the end of the company’s fiscal year
Some companies choose to give out their bonuses at the end of the fiscal year. They may want to see how they performed. If the company has had a good year they may give a certain percentage of it out to the employees.
At the employee’s yearly anniversary
Some companies give out the bonuses to individuals when it is the anniversary of when they first joined the company. They may have a review and get the bonus because of a positive review. Some may give the exact amount based on how they did whereas others might have standard amount.
When something big happens in the company
Many companies will give out bonuses when a special event happens in the company such as scoring a huge client or sale. They may have a rule of sharing the wealth with their employees.
When an individual performs at a certain level
Oftentimes bonuses are tied into performance. If the employee is showing exemplary performance then they might earn a bonus. You might see this with something like a sales position. Earning bonuses based on performance might keep an employee motivated to perform better. Others might also work hard so that they can receive the bonuses as well. It may also make them feel good about the company. This may be based on something very specific such as a certain number of cars that the salesperson has to sell or it may be more subjective such as when an employee is just doing well overall.
Bonus pay can help an employee feel and perform better. There are many different reasons that a company might choose to give such pay. A lot of them will choose several of the above occasions on which to give bonuses to their employees. They may also give a certain bonus based on the position the employee holds in the company.
Updated On: 09/18/2010 Published On: 09/18/2010 Article ViewerClose
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