What is a lump-sum bonus based on?

A lump-sum bonus is typically based on meeting predetermined goals. This type of bonus is awarded to employees when they achieve specific performance objectives set by the organization, which can include metrics such as sales targets, project completions, or other measurable outcomes. The purpose of a lump-sum bonus is to provide a one-time payment as recognition for exceptional performance, effectively incentivizing employees to meet or exceed their goals.

While attendance records, duration of employment, and team performance may influence compensation packages or bonuses in different contexts, they do not specifically align with the structured criteria that a lump-sum bonus is designed around. Instead, the focus is on individual or team achievements that reflect the goals established by the organization, making the correct choice clearly linked to performance metrics.