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Performance-related rewards
Performance-related rewards are incentives or bonuses given to employees based on their performance. The idea behind these rewards is to motivate employees to work harder and achieve higher levels of performance. Some examples of performance-related rewards include:
- Bonuses: extra pay or cash rewards for achieving specific goals or objectives.
- Commissions: a percentage of sales that an employee generates.
- Stock options: the opportunity to purchase company stock at a discounted price.
- Merit-based pay increases: raises or promotions based on an employee's performance.
- Non-financial rewards: recognition, additional responsibilities, or opportunities for professional development.
These rewards can be effective in motivating employees, but they must be structured and communicated clearly to ensure that employees understand how their performance will be evaluated and rewarded.