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Old 12-29-2004, 12:35 PM
elwoodblues elwoodblues is offline
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Join Date: Oct 2002
Location: Rosemount, MN
Posts: 462
Default Re: bonus question

Bonuses are good for the company for a few reasons:

1) they aren't guaranteed
2) they aren't part of your "salary" which is the base upon which you receive your annual % increase due to performance (so you would get a 5% increase on 50K instead of 60k, for example)
3) there is an incentive to stay in the job until you get your bonus (for example, you are thinking about leaving the job but the bonus doesn't pay for another 4 months)
4) there is an emotional aspect that the employee feels that the company just gave them a "gift"
5) employees feel more a part of the organization when they are incented when the company does well
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