Cash awarded to employees as a one-off payment to recognise their contribution – to sales or profits, for example, or for achieving pre-determined targets. Alternatively, bonuses may be given which are not linked to individual or business performance, but simply issued to boost employees’ pay at certain times of the year, for example, Christmas. Bonuses can encourage employees to work harder and give rise to satisfaction and might help to attract and retain good staff, thereby, making recruitment easier (and cheaper) and minimising labour turnover and associated costs.