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Bonus criteria

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Employee bonus programs defined. An employee bonus is a form of payment – most often monetary – in addition to an employee’s base pay. Employers usually offer bonuses to employees for a specific purpose (for example, to reward certain behavior or to recognize the achievement of established goals). The standard of performance required to trigger a bonus, and the amount of bonus paid, are flexible; for discretionary bonuses to create an incentive, employees must trust they will receive a bonus for good performance; non-discretionary bonuses are based on defined performance criteria. Annual bonuses have a wide range in average amounts and can vary yearly. You may get a bonus one year but nothing the next, so be sure you understand how your employer selects people to receive a year-end bonus. Do not give out employee bonuses spontaneously or without merit. It decreases employee morale and productivity. Employees need to know how they can earn their bonus. 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