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. Find out what performance bonuses are and the types a company may offer with a sample of what a performance bonus policy looks like.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. A performance bonus is a form of compensation given to employees on top of their base salary to recognize and reward their hard work. Consider these performance bonus examples to improve employee productivity and achieve your business objectives. All of the following must apply: Development must include at least three (3) residential dwelling units. An incentive bonus agreement is a contract between an employer and employee that details information about a cash bonus offered as an incentive. Tie employee bonuses to clear goals to make them feel obtainable and motivating. Each of the three (3) sections should be filled out, signed, and forwarded to the Office of Talent.