Employee Bonuses: Calculation for 3 Types of Bonus Pay Employee bonuses are a crucial aspect of compensation that can motivate and reward employees for their hard work and dedication. By offering bonuses, employers can increase employee satisfaction, engagement, and productivity. In this article, we will explore three types of bonus pay and how they are calculated. 1. Performance-Based Bonuses Performance-based bonuses are given to employees who achieve or exceed their performance goals. These goals can be individual, team, or company-wide. To calculate performance-based bonuses, employers typically use a predetermined formula that takes into account factors such as individual performance metrics, team performance, and overall company performance. The formula may assign…