The calculation of performance bonuses can vary depending on the business model and the specific metrics being used. Common methods include:
Percentage of Salary: Bonuses are calculated as a percentage of the employee's base salary. Fixed Amount: A predetermined bonus amount is given based on achieving specific goals. Profit Sharing: A portion of the company's profits is distributed among employees. Goal-Based: Bonuses are tied directly to the achievement of specific KPIs or targets.