A bonus plan is a type of compensation arrangement that provides additional financial incentives to employees beyond their regular salary or wages. Bonus plans can take many forms, from annual performance-based bonuses to one-time bonuses for exceptional work or achievements. In this article, we will explore the definition and meaning of bonus plans, their origins, and how they are used in different contexts.
Definitions
A bonus plan is a type of compensation plan that provides additional financial incentives to employees beyond their regular salary or wages. It is a way for employers to reward employees for exceptional work or achievements, or to motivate them to meet specific performance goals. Bonus plans can be structured in many different ways, including annual performance-based bonuses, one-time bonuses, and profit-sharing plans.
Origin
The concept of bonus plans has been around for centuries, with some historians tracing their origins back to ancient Rome. In modern times, bonus plans have become a standard part of many compensation packages, especially in the corporate world. They are often used as a way to attract and retain top talent, as well as to motivate employees to achieve specific goals or objectives.
Meaning in different dictionaries
The meaning of bonus plan can vary depending on the dictionary or source. According to Merriam-Webster, a bonus plan is “a system of compensation that provides additional pay to employees based on performance or other criteria.” The Oxford English Dictionary defines it as “a scheme whereby employees receive additional financial rewards based on their performance or the company’s profits.” Other dictionaries may provide slightly different definitions, but the basic idea is the same.
Associations
Bonus plans are often associated with performance-based pay and employee motivation. They are also sometimes associated with profit-sharing plans, where employees receive a percentage of the company’s profits as a bonus. In some cases, bonus plans may be used as a way to reduce turnover and retain top talent, or to incentivize employees to meet specific goals or objectives.
Synonyms
Some synonyms for bonus plan include incentive plan, performance-based pay, and profit-sharing plan. Other related terms might include commission-based pay, merit-based pay, or variable pay.
Antonyms
The antonyms of bonus plan might include fixed pay, salary-based pay, or hourly wages. These types of compensation plans do not typically include additional financial incentives beyond the employee’s regular pay.
The Same Root Words Bonus Plan
The root words of bonus plan are “bonus” and “plan.” Bonus is derived from the Latin word “bonus,” which means “good.” Plan comes from the Latin word “planus,” which means “flat” or “level.” Together, bonus plan refers to a flat or level system of providing additional financial incentives to employees based on performance or other criteria.
Example Sentences
Here are a few example sentences that illustrate how bonus plans might be used in different contexts:
- The company’s annual bonus plan rewards employees who meet or exceed their performance goals.
- As part of the profit-sharing plan, employees will receive a bonus based on the company’s earnings for the year.
- The sales team is motivated by a commission-based bonus plan that rewards them for exceeding their sales targets.
- The CEO implemented a new incentive plan to encourage employees to come up with innovative ideas for the company.
- The one-time bonus plan was a surprise reward for the team’s outstanding work on a difficult project.