An effective bonus system should be based on two key factors: annual objectives and long-term objectives.

Question

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An effective bonus system should incentivize employees to achieve both short-term and long-term objectives. Short-term objectives are typically annual goals that can be achieved within the year, while long-term objectives are more strategic objectives that may take several years to achieve. By linking bonuses to both annual and long-term objectives, employees are motivated to work towards both immediate goals as well as broader strategic goals, which can ultimately drive the success of the company.

An Effective Bonus System Should Be Based on Two Key