The term “bonus” refers to something given or paid in addition to what is usual or expected. A sales team might receive a bonus for exceeding their quarterly quota, for example. It can also refer to an extra dividend paid to shareholders or policyholders of a company.
Such incentives play a significant role in motivation and performance across various fields. In business, they are a powerful tool for driving productivity and rewarding achievement. Historically, bonuses have been utilized to foster loyalty and retain valuable employees. They can also function as a profit-sharing mechanism, aligning the interests of employees with the overall success of the organization.