To be eligible for the nondiscretionary bonus, the employee must meet specific requirements. Employees must fulfill all company standards in order to get the incentive. For instance, under a bonus pay plan, workers who reach or surpass performance or productivity targets are given incentives.
Nondiscretionary bonus examples include:
- bonuses for hiring.
- bonuses for attendance.
- rewards for high-quality labor.
- Bonuses for work accuracy.
- bonuses for profitability.
- Bonuses for individual or collaborative production.
