What are the different types of performance bonuses?

What are the different types of performance bonuses?

There are several types of performance bonuses, including individual bonuses, team bonuses, and company-wide bonuses. Individual bonuses reward personal achievements, while team bonuses are based on group performance. Company-wide bonuses are tied to overall company success.

Can you explain individual bonuses in more detail?

Sure! Individual bonuses are typically awarded to employees who meet or exceed specific performance targets. These can be based on sales figures, project completions, or other measurable outcomes.

What about team bonuses? How do they work?

Team bonuses are given to groups of employees who work together to achieve a common goal. The bonus amount is usually distributed among team members based on their contributions to the team's success.

Are there any downsides to performance bonuses?

Yes, there can be downsides. Performance bonuses may lead to unhealthy competition among employees, and if not structured properly, they can demotivate those who feel their efforts are not recognized.