The key to a successful bonus plan is that the reward needs to be ________.
A) tied to a recent performance
B) tied to a specific amount of deliverables
C) equal across everyone in the department
D) made very public
E) cumulative in nature

Question

Quizplus · Accepted Answer

A successful bonus plan should tie the reward to recent performance. This motivates employees to perform better in order to receive the bonus and ensures that the bonus is earned through hard work and achievement. Tying the bonus to a specific amount of deliverables or making it equal across the board may not incentivize high performance or may not reflect individual effort and contribution. Making the bonus very public or cumulative in nature may have varying effects depending on the culture and values of the organization.

The Key to a Successful Bonus Plan Is That the Reward