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GCSE Business · key term
An additional payment made to an employee, often for meeting a target or achieving specified results.
Used by Edexcel and OCR
Specification 2.5.4 · Paper 2
Revise: Employee MotivationA bonus is an additional payment, often awarded for achieving a target, completing a project or exceeding performance expectations. The prospect of extra money gives employees a reason to work towards a particular result. For example, a team bonus for meeting a project deadline can encourage staff to cooperate to finish on time.
Paper 1
An additional payment made to an employee for achieving a goal or meeting performance expectations.
Revise: Financial Motivation MethodsThe main methods are pay, bonuses, profit sharing and fringe benefits. Each connects the reward to work in a different way.
Distinguish a bonus for meeting a target from profit sharing linked to the overall profits of the business.
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