Bonuses

A bonus is a financial reward that is given in addition to the fixed salary. Often it is linked to performance, i.e. results, behaviors or measurable activities that an employee has achieved. Unlike commission, which is usually calculated as a percentage of a sale, bonus is more flexible in its design and can be adapted to both individual and organizational objectives.

Historical and practical significance

Over the decades, the bonus has been one of the most widely used incentives in working life. From factory workers who received piecework bonuses for high productivity, to modern salespeople who get a quarterly bonus for reaching their budget, the principle has been the same: an extra reward for an extra effort. Many organisations also use bonus schemes as part of retaining key employees or creating a stronger community around the company's overall strategy

Types of bonuses

There are many different forms:

• Result bonus — typically given when an employee or team achieves certain goals, such as revenue or new customers.
• One-Time Bonus — paid on an ad hoc basis, for example in the context of a specific action or project.
• Annual bonus — often linked to the overall performance of the company and used as a form of profit sharing.
• Behavior Bonus — where the focus is on desired behavior, for example high customer satisfaction or teamwork.

Benefits and Challenges

A well-designed bonus scheme can increase motivation, create clear goals, and strengthen the link between effort and reward. But the scheme may also have a flip side. If the criteria for obtaining the bonus are unclear or the withdrawal occurs with a long delay, the effect may disappear. In the worst case, a poor structure can lead to frustration or inappropriate behaviour, with employees chasing bonuses rather than creating long-term value. At a time when many companies demand data-driven tools, bonus schemes are often coupled to digital systems that can calculate and visualize results in real time. This makes the bonus more transparent and increases confidence that it will be paid correctly. Here, platforms like Prowi act as a link between strategy and action: employees can see exactly what triggers bonuses, while management gets insight into how rewards affect performance.

Bonus - an additional payment in addition to fixed salary

Bonus is a key element of many incentive programs. Properly applied, it can be a powerful motivating factor that both rewards individual achievements and supports the company's strategy. However, precision, transparency and timely payment are essential for the bonus to be perceived as fair and valuable — both for the employee and for the organization as a whole.

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