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Bonus Time

A bonus program is yet another excellent way to recognize and reward superior performance, particularly over a stipulated period of time, such as one year. However, it is important for all of the players to understand the criteria that are used to determine bonuses.

One way to structure these programs is for a manager to jointly establish specific goals with the employee, and then make the bonus dependent on a combination of the employee meeting his or her goals and the company meeting its goals. When an employee earns that bonus, it should not simply show up in his or her paycheck, but rather should be presented in a one-on-one congratulatory meeting with the manager.

For bonuses to have a psychologically rewarding impact, they need to be linked to performance. If they are viewed as something that employees are automatically entitled to receive, their value declines in all senses.