Final answer:
Bonuses can be a powerful tool to motivate and retain employees by rewarding exceptional performance or encouraging the achievement of certain targets or goals.
Step-by-step explanation:
Employers may use bonuses as a way to incentivize and retain employees, rather than holding them hostage. Bonuses can be a tool to reward exceptional performance or to motivate employees to meet certain targets or goals. By offering bonuses, employers can encourage employees to go above and beyond their regular duties, resulting in increased productivity and overall success for the company.
For example, let's say an employer wants to boost sales during a particular quarter. They may offer a bonus to the sales team for exceeding a certain revenue target. This bonus serves as an additional incentive for the sales representatives to work harder and close more deals, ultimately benefiting both the employees and the company.
While bonuses can be a powerful tool to motivate employees, it is important for employers to ensure fairness and transparency in their bonus programs. Employees should know the criteria for earning bonuses and understand how their performance directly impacts their eligibility for additional compensation.