HR Glossary

What is Performance Bonus?

A variable pay component awarded to employees based on achieving or exceeding individual, team, or organizational performance targets during a defined evaluation period.

Why it matters in hiring

Performance Bonus comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

• Peer Learning
• Peer Review
• Pension Plan
• Performance Appraisal
• Performance-Based Pay
• Performance Conversation
• Performance Gap
• Performance Improvement Plan (PIP)

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.