The way you choose how to calculate bonuses for employees can affect company morale. Performance bonuses encourage personnel to work toward achieving individual and company goals, and nonperformance bonuses can make everyone feel appreciated. You can multiply an employee’s total sales earned by a fixed bonus percentage or pay a flat rate to everyone.
Types of Employee Bonuses
Before we get into how to calculate a bonus, let’s consider the different types of bonuses you can pay out. Performance-based bonuses are based on key metrics, like sales volume, annual cost savings, and goals reached.
