HR Intelligence

Knowledge and tips to manage human resources issues important to business.

Expertise

The Pitfalls of Paying Bonuses

If you polled 100 random people on the street, it would be tough to find anyone who does not like work bonuses.

Employees like them for obvious reasons — recognition and monetary reward for a job well done. Employers like them because they can lead to a boost in productivity, morale and foster loyalty. Companies also use bonuses as an incentive to attract and retain top talent, which has taken on added importance as the labor market grows tighter.

But like all things employment, there are legal risks to consider when offering bonuses.