# What is a Bonus Scheme?

A bonus scheme rewards employees for performance or company success. SMEs use it to boost motivation and retention.

Source: https://faqtic.co/glossary/bonus-scheme

## Why it Matters for SMEs

- Rewards effort
- Boosts morale
- Retains staff

## Example in Practice

SMEs log bonus criteria in Factorial policies.

## Frequently Asked Questions

### Why offer bonuses?

To motivate and reward.

### Types?

Performance, profit-sharing, spot.

### Tools to manage?

Yes, HR and payroll.

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Canonical HTML: https://faqtic.co/glossary/bonus-scheme