Bonus pools

Bonus pools are a financial mechanism used by companies to distribute additional compensation to employees based on performance. Organizations set aside a certain amount of money—called a "pool"—from profits or revenue, which is then allocated as bonuses to employees. The distribution can be based on individual performance, team achievements, or overall company success. This system incentivizes employees to work towards common goals, as their efforts are directly tied to the bonuses they may receive, fostering motivation and engagement within the workplace.