Simon Kuznets Kharkiv National University of Economics

PRESENTATION ON THE
TOPIC:
WHAT IS A BONUS SCHEME?

Student: Dolia Alina

Group: 6.03.073.030.20.2
 Сontent

■ Definition
■ Types of bonuses
■ Types of employee bonuses
■ Principles for establishing a bonus system
■ Bonuses: pros and cons
■ Concusion
 Definition
The idea of a bonus scheme is based on the principle of creating
(stimulating) the required behavior model for the employee,
which reflects the values of the company and is recognized by it.
The idea of directing employee behavior to meet specific
company goals is not explicitly expressed, but it evokes a sense
of loyalty, belonging to the company.
 Types of bonuses
Bonus to the worker Bonus to the buyer

■ Focused on motivating employees in ■ The main task of the bonus for the
the workplace, to the extent of consumer is to encourage and
offering incentives that help keep motivate permanent relationships:
employee turnover to a minimum. purchases of goods, use of services.
 Types of employee bonuses

Conditional bonus Fixed bonus

■ Incentive ■ Delayed
■ Standard ■ Instant
■ Penalty
Principles for establishing a bonus system

■ It is necessary to determine the goals of the introduction of bonuses.

■ The use of a bonus should provide a positive effect
■ The value of the bonus should take into account both the interests of the buyer and the
interests of the seller.

■ When developing a system of discounts or the value of a bonus, the size of the initially
established (base) price
■ The amount of the bonus usually depends on the price of the item.
■ When establishing discounts or bonuses, the nature of the elasticity of demand for the
products sold must be taken into account
 Bonuses: pros and cons

Pros Cons

■ attracting a certain number of clients; ■ the link between remuneration and

work may be weak.
■ reduction of overhead costs;
■ bonus programs are quite expensive.
■ achieving a certain sales volume
■ managers managing bonus funds seek
to use them regardless of actual
results.
■ employees may have a sense of the
“obligation” to pay bonuses,
regardless of the results.
 Conclusion

In either embodiment, the bonus scheme is designed to benefit

specific recipients and allows the company, in turn, to derive
some value from their efforts. When applied to employees, a
company benefits from happier employees who tend to be more
productive, which in turn increases the profitability of the
business and also helps to reward valuable employees to stay with
the employer.