Bonus Structure

A bonus structure is a plan that companies use to reward employees financially based on their performance or the company's success. It outlines how bonuses are calculated and awarded, often linking higher performance, meeting targets, or achieving specific goals to larger bonuses. The purpose is to motivate employees to excel by providing extra compensation beyond their regular salary. Bonus structures can vary widely, including fixed amounts, percentage-based rewards, or performance tiers, and are designed to align individual efforts with organizational objectives.