bonus-rate

Vocabulary Word

Definition

The term 'bonus rate' refers to extra payment given above the normal. This could be a raise in salary for excellent performance or an added interest on your savings in the bank.

Examples in Different Contexts

The bonus rate in employee compensation refers to the percentage of salary or predefined criteria used to calculate bonuses. A compensation manager might say, 'We've set a competitive bonus rate to reward outstanding performance and motivate our team.'

Practice Scenarios

Academics

Scenario:

The university has seen an increase in external funding. We need to ensure these resources are distributed fairly among departments.

Response:

Implementing a bonus rate on research grants proportionate to the department's size could be a fair method.

Finance

Scenario:

Our bank wants to incentivize savings among our customers. We need an attractive proposition for them to maintain their deposits.

Response:

A bonus rate on interest for savings without any withdrawals could be a good proposal.