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In some circumstances, bonuses are a set amount that is decided upfront, corresponding to a signing bonus for a model new hire or a retention bonus to encourage an worker to stick with an organization. Firms are increasingly changing raises with bonuses—a pattern that vexes many workers. Moreover, it can be tough for an employer to precisely assess their workers’ efficiency success. After all, it’s simpler for administration to pay bonuses to everyone than to elucidate to inadequate performers why they have been denied.
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