Human Resources

Q:

What is the difference between an incentive-based and a performance-based bonus?



A:

Performance-based bonuses are tied to an individual’s performance. These bonuses can range from $500 - $3,000 and must use only non-state appropriated funds. State law caps these bonuses at $3,000. Justification is required for these bonuses.

Incentive-based bonuses are tied to an individual’s contribution to the bottom line through the generation of net external funds or savings captured to fund the strategic plan. These bonuses can range from $1,000 - $10,000 and must be paid from existing non-state appropriated funds. Additional justification is required for these bonuses.




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