Glossary

Quick Definition of Zero-based bonus

Zero-based bonus is a type of bonus system used in the HR world that is based on performance rather than seniority. It is a system that rewards employees based on their individual performance and contribution to the company, rather than on their length of service or other factors. This system is designed to motivate employees to work harder and to reward those who are most productive. It also helps to ensure that employees are fairly compensated for their efforts.

What is the purpose of Zero-based bonus

Zero-based bonus is a type of incentive program that rewards employees based on their performance. It is designed to motivate employees to work harder and achieve better results. The bonus is based on a predetermined set of criteria, such as meeting certain goals or completing certain tasks. The bonus is typically a percentage of the employee's salary or a fixed amount. The goal of the program is to reward employees for their efforts and to encourage them to continue to strive for excellence.

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Example of Zero-based bonus

When a workplace uses zero-based bonus, it can affect the way bonus is paid and given out. This is because a zero-based bonus is not based on the amount of work done, but on the lowest amount of work that was done in a specific day. So, if a workplace uses zero-based bonus, the bonus is paid for the amount of work that is done on the day of the event, not for the amount of work that was done overall. This can affect the way bonus is paid and given out in workplaces where zero-based bonus is used.

Brief history of Zero-based bonus

Zero-based bonus is a relatively new concept in the workplace, and its history can be traced back to the 1970s. The concept was first introduced by Peter Pyhrr, a management consultant who worked for the Texas Instruments company. Pyhrr developed the concept of zero-based budgeting, which involved starting each budget cycle from scratch, rather than simply adjusting the previous year's budget.The idea behind zero-based budgeting was to encourage companies to be more efficient and to eliminate wasteful spending. This concept was later adapted to the concept of zero-based bonus, which involves evaluating employee performance and determining bonuses based on their individual contributions, rather than simply giving everyone a standard bonus.The concept of zero-based bonus gained popularity in the 1980s, as companies began to focus more on individual performance and productivity. This approach was seen as a way to motivate employees to work harder and to reward those who were making significant contributions to the company's success.Today, many companies use some form of zero-based bonus system, although the specifics of how it is implemented can vary

FAQs about Zero-based bonus

1. What is a zero-based bonus?A zero-based bonus is a type of performance-based bonus that is awarded to employees based on their individual performance and contribution to the company. Unlike traditional bonuses, which are often based on seniority or company-wide performance, zero-based bonuses are calculated based on the employee's specific achievements and goals.2. How is a zero-based bonus calculated?A zero-based bonus is typically calculated by setting specific performance goals for each employee at the beginning of a performance period. These goals are then used to evaluate the employee's performance at the end of the period, and the bonus amount is determined based on how well the employee met or exceeded these goals.3. What are the benefits of a zero-based bonus system?One of the main benefits of a zero-based bonus system is that it can help to motivate employees to perform at their best by providing a clear incentive for achieving specific goals. Additionally, because the bonus is tied directly to individual performance, it can help to ensure that employees are recognized and rewarded for their contributions to the company. Finally,

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