GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
20 YearsHelping You Live Richer
Reviewedby Experts
Trusted byMillions of Readers
Currently, most American workers earn a salary.
However, more jobs in the future could have a bonus-pay structure instead.
With bonus-based pay, companies can reward high-performers and reduce payroll costs for employees who dont reach their targets.
In fact, The Alexander Group, a consulting firm, recently shared its2024 Sales Compensation Trends Survey.
Industries with salary-based pay typically include healthcare, government jobs, education, and manufacturing.
Many companies that want to encourage high-performance employees choose bonus-based pay structures.
This enables employees to budget their money effectively and plan forlong-term expenses and savings goals.
Drawbacks
The drawback to salary pay is that employees are limited in how much they can earn.
Although salaried employees can earn raises, theres no guarantee they will secure one.
Additionally, raises may be limited depending on company performance orbroader environmental factors.
Bonus-Based Pay
Bonus-based pay enables high performers to earn more.
According to an article in theHarvard Business Review, sometimes offering pay incentives has downsides.
One study showed that bonus structures increased employee absences.
Another showed that regular performance meetings had more of an impact on revenue than bonuses.
Can You Earn More With Bonus-Based Pay?
For some, shifting to bonus-based pay can mean a much higher income.
For others, it could increase stress levels at work.
That way, people can determine whether anew bonus-based jobis an opportunity for growth and more income.
More From GOBankingRates
Share This Article:
