Reward vs. Bonus — What's the Difference?
By Tayyaba Rehman & Maham Liaqat — Updated on May 5, 2024
A reward is a general term for any form of recognition given for someone's effort or achievement, while a bonus specifically refers to extra compensation given to employees beyond their usual salary.
Difference Between Reward and Bonus
Table of Contents
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Key Differences
Rewards can encompass a wide range of acknowledgments, from trophies in sports to praise for good behavior in children. In contrast, bonuses are typically financial and given in a workplace setting to incentivize or acknowledge employees' contributions.
Rewards are often used as a motivational tool in various contexts such as education, workplace, and personal achievements, recognizing efforts regardless of the outcome. On the other hand, bonuses are usually tied to specific performance metrics or achievements within a company and are used to enhance employee productivity and satisfaction.
The nature of rewards can be both tangible, like gifts, or intangible, such as recognition or a title. Conversely, bonuses are explicitly monetary or equivalent to money, such as stock options, and are typically quantifiable.
Rewards may be given at any time to affirm positive behavior or accomplishments, aiming to reinforce desired actions. In contrast, bonuses are often planned and distributed at regular intervals, such as annually or quarterly, depending on the company's policy.
The criteria for receiving a reward can vary widely and be highly subjective, depending on personal or institutional values. On the other hand, bonuses are generally based on clear, predefined criteria related to job performance, making them more objective and measurable.
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Comparison Chart
Definition
Acknowledgment given for effort or outcome.
Financial extra payment beyond regular salary.
Context
Broad, including personal, educational, etc.
Primarily professional workplaces.
Form
Can be monetary, physical items, or symbolic.
Primarily monetary.
Timing
Can be anytime, often unexpected.
Typically regular, often annual or quarterly.
Criteria
Subjective, can be effort or behavior-based.
Objective, performance-based.
Compare with Definitions
Reward
Something given in recognition of service, effort, or achievement.
She received a reward for her honesty.
Bonus
An amount of money added to wages on a seasonal basis, especially as a reward for good performance.
She received a year-end bonus for her exceptional sales record.
Reward
A prize or other incentive given to promote a specific behavior or outcome.
The reward for winning the contest is a trip to Paris.
Bonus
Something welcome and often unexpected that accompanies and enhances something that is itself good.
The warm weather was a bonus on our vacation.
Reward
To give a reward to; honor for service, achievement.
The teacher rewarded the student with extra credit.
Bonus
An extra dividend paid to shareholders from surplus.
The company issued a bonus to its shareholders after a profitable year.
Reward
To make a payment to as a reward.
They rewarded him handsomely for his efforts.
Bonus
An extra free issue of a publication.
Subscribers received a bonus issue at the end of the year.
Reward
The benefit received from doing something well.
The reward of hard work is often success.
Bonus
An additional stage or round in a game or contest that offers a chance to score extra points.
He unlocked a bonus round in the video game.
Reward
A thing given in recognition of service, effort, or achievement
He's reaping the rewards of his hard work and perseverance
The holiday was a reward for 40 years' service with the company
The emotional rewards of being a carer
Bonus
Something given or paid in addition to what is usual or expected.
Reward
Give something to (someone) in recognition of their services, efforts, or achievements
The engineer who supervised the work was rewarded with the MBE
Bonus
A sum of money or an equivalent given to an employee in addition to the employee's usual compensation.
Reward
A consequence that happens to someone as a result of worthy or unworthy behavior
The rewards of exercise.
The rewards of lying to your boss.
Bonus
A sum of money in addition to salary that is given to a professional athlete for signing up with a team.
Reward
Money offered or given for some special service, such as the return of a lost article or the capture of a criminal.
Bonus
A subsidy from a government to an industry.
Reward
A satisfying return on investment; a profit.
Bonus
A sum of money paid by a government to a war veteran.
Reward
(Psychology) The return for performance of a desired behavior; positive reinforcement.
Bonus
A premium, as of stock, that is given by a corporation to another party, such as a purchaser of its securities.
Reward
To give a reward to or for.
Bonus
A sum of money that is paid by a corporation in excess of interest or royalties charged for the granting of a privilege or a loan to that corporation.
Reward
Something of value given in return for an act.
For catching the thief, you'll get a nice reward.
Bonus
(Basketball) An additional free throw awarded to a player who has been fouled when the opposing team has committed more than a specified number of fouls during a period of play.
Reward
A prize promised for a certain deed or catch
The rewards for bringing in badly wanted criminals are printed on 'dead or alive' posters.
Bonus
Something extra that is good; an added benefit.
Reward
The result of an action, whether good or bad.
Is this the reward I get for telling the truth: to be put in jail?
Bonus
An extra sum given as a premium, e.g. to an employee or to a shareholder.
The employee of the week receives a bonus for his excellent work.
Reward
(transitive) To give a reward to or for.
Why are you rewarding the child for misbehaving?
Why are you rewarding that bad behaviour?
Bonus
(video games) An addition to the player's score based on performance, e.g. for time remaining.
Reward
(transitive) To recompense.
Decorations are meant to reward the most meritous acts and services.
Bonus
(basketball) One or more free throws awarded to a team when the opposing team has accumulated enough fouls.
Reward
To give (something) as a reward.
Bonus
(transitive) To pay a bonus, premium
Reward
To give in return, whether good or evil; - commonly in a good sense; to requite; to recompense; to repay; to compensate.
After the deed that is done, one doom shall reward,Mercy or no mercy as truth will accord.
Thou hast rewarded me good, whereas I have rewarded thee evil.
I will render vengeance to mine enemies, and will reward them that hate me.
God rewards those that have made use of the single talent.
Bonus
A premium given for a loan, or for a charter or other privilege granted to a company; as the bank paid a bonus for its charter.
Reward
Regard; respect; consideration.
Take reward of thine own value.
Bonus
An extra dividend to the shareholders of a joint stock company, out of accumulated profits.
Reward
That which is given in return for good or evil done or received; esp., that which is offered or given in return for some service or attainment, as for excellence in studies, for the return of something lost, etc.; recompense; requital.
Thou returnestFrom flight, seditious angel, to receiveThy merited reward.
Rewards and punishments do always presuppose something willingly done well or ill.
Bonus
Money paid in addition to a stated compensation.
Reward
Hence, the fruit of one's labor or works.
The dead know not anything, neither have they any more a reward.
Bonus
Anything that tends to arouse;
His approval was an added fillip
Reward
Compensation or remuneration for services; a sum of money paid or taken for doing, or forbearing to do, some act.
Bonus
An additional payment (or other remuneration) to employees as a means of increasing output
Reward
A recompense for worthy acts or retribution for wrongdoing;
The wages of sin is death
Virtue is its own reward
Reward
Payment made in return for a service rendered
Reward
An act performed to strengthen approved behavior
Reward
The offer of money for helping to find a criminal or for returning lost property
Reward
Benefit resulting from some event or action;
It turned out to my advantage
Reaping the rewards of generosity
Reward
Bestow honor or rewards upon;
Today we honor our soldiers
The scout was rewarded for courageus action
Reward
Strengthen and support with rewards;
Let's reinforce good behavior
Reward
Act or give recompensation in recognition of someone's behavior or actions
Common Curiosities
What are the common occasions for giving bonuses?
Bonuses are commonly given during annual reviews, after project completions, or during festive seasons.
How does a bonus differ from a regular salary?
A bonus is an additional payment given for particular achievements or performances, beyond the regular salary.
Can rewards be non-financial?
Yes, rewards can be non-financial, such as public recognition, trophies, or personal acknowledgments.
How do rewards influence behavior?
Rewards positively influence behavior by motivating individuals to perform desired actions or persist in activities.
Is a bonus guaranteed?
Bonuses are not guaranteed; they depend on both the employee's performance and the company's financial health.
Can a reward be a form of feedback?
Yes, rewards serve as a form of positive feedback, reinforcing good behavior or successful outcomes.
What makes a bonus effective?
An effective bonus is timely, reflects the recipient's efforts accurately, and aligns with the company's goals.
How should rewards be given to maximize their impact?
Rewards should be timely, appropriate to the achievement, and meaningful to the recipient to maximize their impact.
What is the purpose of a reward?
A reward aims to recognize and encourage positive behavior or achievements.
Can everyone receive a bonus?
Not everyone may receive a bonus; it often depends on meeting specific performance criteria.
What might affect the amount of a bonus?
Factors such as company profits, individual performance, and economic conditions can affect bonus amounts.
Who decides what constitutes a reward?
The criteria for rewards are set by those who give them, which can be parents, teachers, employers, or others.
What are the risks of relying heavily on bonuses?
Over-reliance on bonuses can lead to short-term thinking and can undermine teamwork if not structured carefully.
How do bonuses impact employee motivation?
Bonuses can significantly boost employee motivation and loyalty by providing financial rewards and recognition.
Are rewards always positive?
While rewards are intended to be positive, if not designed well, they can lead to unintended consequences or unhealthy competition.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Maham Liaqat
