Zero-based bonus A zero-based bonus structure is where a company classifies a group of employees as ineligible to receive certain bonuses or benefits. This is done by assigning ratios, rankings, or classes based off of salary ranges, commission percentages, and other wage requirements. An example of a zero-based bonus is when an organization restricts a group of employees from attaining a bonus if their pay level exceeds a certain amount. Restrictions vary significantly depending on the compensation structure within the organization. Implementing a zero-based bonus allows companies to maintain fair and competitive bonus structures to incentivize and encourage employees to achieve their personal best.
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