Bonus facts for kids

A bonus is like a special extra payment that someone gets in addition to their regular salary or wage. Think of it as a reward for doing a great job or for reaching certain goals. Companies often give bonuses to thank their employees for hard work and to encourage them to keep doing well.

What is a Bonus?

A bonus is an extra amount of money given to an employee. It is not part of their usual pay. Companies give bonuses for many reasons. For example, they might give a bonus if the company has a very successful year. Or, an employee might get a bonus for doing an excellent job on a project.

Why Companies Give Bonuses

Companies give bonuses to motivate their team. When employees know they can get extra money for good work, they often try harder. Bonuses also help companies keep their best workers. It shows employees that their hard work is valued. This can make them feel happy and want to stay with the company.

Different Kinds of Bonuses

There are several types of bonuses.

• Performance Bonus: This is given when an employee or a team meets specific goals. For example, a sales team might get a bonus if they sell a certain amount of products.
• Signing Bonus: Sometimes, a company offers a signing bonus to a new employee. This is an extra payment just for joining the company.
• Holiday Bonus: Some companies give bonuses around holidays like Christmas. This is a way to thank employees for their work throughout the year.
• Referral Bonus: If an employee helps the company hire a new person, they might get a referral bonus.

Other Meanings of Bonus

The word "bonus" can also mean other things. For example, in a game like Quiz bowl, a "bonus" is a type of question. It is usually a multi-part question that a team can answer for extra points after answering a main question correctly.

See also

In Spanish: Bonus para niños