Bonus Pay
In a bonus-based compensation system, there is a base salary coupled with a significant bonus based on achieving specified performance goals. With a properly designed bonus system, employees are rewarded for excellence of performance even if the employer has had a poor year. Such a system not only has a cost advantage over the merit and cost-of-living increase system, but also more clearly focuses on performance. Use this Bonus Pay policy template to create a policy that fits the needs of your organization.