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Importance of Bonuses for Employees in Startups & Small Businesses


Bonuses work like investments, wherein rewarding a bonus to an employee will usually increase the employees’ work input and simply encourage them to work better in the future.

Every bit of due diligence counts

In a startup and or a small business where the number of employees are mostly limited, every bit of effort counts. Rewarding the employees now and then will increase their due diligence considerably, and hence increase the overall input from the manpower in the organization itself.

Hope for the rest

When an employee is rewarded a bonus for doing good work, it will obviously encourage him/her to continue doing quality work. Along with this, employees reporting to him/her will also be encouraged to strive and work harder towards gaining rewards. Therefore, the benefits of giving out a bonus could be contagious, if not stagnant.


Giving out bonuses regularly for exceptional work and achieving targets on time will leave your employee satisfied with an organization that treats him/her well. This will increase their sense of loyalty towards the organization. Not only will it cause your employee to stick to your firm for as long as possible but also will encourage him/her to be a great custodian of company secrets.

The extra mile

Handing out bonuses itself is going an extra mile for the organization. Doing so will probably cause your employee to do so too. You may notice your employees being ready to work extra time, forfeit leave during work season if needed, and also helping out their fellow colleagues. All this will increase their credibility as good employees and they won’t be hesitant to do so since bonuses are offered to good employees.

Giving out bonuses in a startup and or small business is all the more essential and easier since there are lesser employees to distribute bonuses to, and the management is much easier to consult in doing so.

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Team sumHR

SumHR is a flexible and configurable end-to-end HR Software/HRMS which help HR teams automate the HR Processes, and improve the employee's HR experience.

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