What is a Bonus Plan? A bonus plan is an agreement between the employer and employee to pay out a predetermined amount of money based on performance.Managers and Department Finance Managers can request base salary changes, allowance plans, and one-time bonuses or payments. Contents. In this article, I will show you how to create a simple plan that is easy to manage and provides protection to the company if financial goals are not met. Management incentive plans motivate hospitality managers to stay focused on the most valuable, profitenhancing elements of your business. An incentive bonus agreement is a contract between an employer and employee that details information about a cash bonus offered as an incentive. The purpose of bonus and incentive plans is to encourage employees to exceed normal job expectations in support of departmental and institutional goals. This employee bonus policy template is ready to be tailored to your company's needs and can be a starting point for setting up your employment policies. Employee incentive programs can help build motivation and improve performance. Discover how to best use them for your organizations.