A bonus is a form of additional compensation or reward given to an employee, typically in the form of money, but it can also include other incentives such as extra vacation days, stock options, or gifts. Bonuses are often given for achieving specific company goals, meeting performance targets, or as a way to motivate and retain employees. They are usually paid on top of regular salary or wages and can be awarded periodically (such as yearly, quarterly, or after completing a specific project).
While bonuses are common in many industries, they are particularly prevalent in sectors such as finance, sales, and technology. Companies often use bonuses as a way to align employee efforts with organizational objectives, rewarding individuals or teams who contribute to the company's success. Additionally, bonuses can serve as a retention tool, offering incentives for employees to stay with the company long-term.