Bonuses

Individual incentive systems tie personal effort to additional rewards for the individual employee.Individual bonuses are used at all levels in firms and are a popular short-term incentive.

Individual employees may receive additional compensation in the form of a bonus, which is a one-time payment that does not become part of the employee’s base pay. A bonus can recognize performance by an employee, a team, or the organization as a whole.

A unique type of bonus is a spot bonus, so called because it can be awarded at any time. Spot bonuses are given for many reasons, perhaps for extra time worked, extra effort, or work on an especially demanding project.

Employees may receive bonuses for almost anything noteworthy.