A performance bonus policy is oftentimes a way for companies to achieve the expected outputs or even beyond from their employees. This is, in other words, a reward for a job well done.

Some employers are usually apprehensive to whether or not implement an employee performance bonus since not all employees are motivated to do their job even if this type of reward system is given. A number of companies removed their bonus based on performance when they observed that it only created unnecessary competition between employees instead of providing teamwork in the company. Others feel that a company performance bonus only hinders an employee to think out of the box and be creative on new ways to solve company problems. This is so because in taking that risk, they're afraid that it might jeopardize their chances on receiving a bonus for performance expected of them. Not all employees, they say, are motivated to work just because of incentives or bonuses but because they're excited about their jobs when they receive full support from their employers. They're also motivated every time the company recognizes their achievements by giving them encouragement, providing the needed resources and handing out rewards with sensible worth.

Alfie Kohn is an author of Punished by Rewards and a writes about 'money as motivator' as a subject. He declares that "You can get people to do more of something or faster for a little while if you provide them an appealing reward. But no scientific study has ever found a long-term enhancement of the quality of work as a result of any reward system. Bribes and threats can get you a short-term effect, but that's it."

On the contrary, some companies have also proven that bonus and performance can possibly be achieved by both parties. While the employers provide bonuses, the employees do their expected output in return. This is especially true to companies like Texas Instruments (TI) where they used incentives and bonuses to foster loyalty. Their employees work hard on long hours and the only thing that keep them stay and continue to work is because of the rewards they may get.

Some prefer to be in the middle, they consider performance bonuses only if the employee has been with the company long enough. And having stayed in the company long would only mean he or she has been performing according to company standards.

In the end, companies should think thoroughly on the performance bonus criteria when they think of applying such system and should also consider the following questions:

• Will the program aid in sustaining the corporate goals by escalating the profit or consumer loyalty?
  
  
• Will it hold up to the consumer's expectations on our products and services?
  
  
• How will I make sure that the criteria on the company performance bonus are objective?
  
  
• Will there be difficulties faced when the program is implemented? If yes, in what degree?
  
  
• Who among the employees should I include the program with?
  
  
• Is the program going to be implemented only once or am I committed to do it again and again?

Whatever the end decision will be, bottom line is that if you really want people to do a good job, provide them a good job to do. Meaning, establish an organization where employees experience a sense of community, where they feel they are important and where their job matters to them. Now, if you think a performance bonus program helps you to achieve this, then the decision is yours to make!