A performance bonus is a financial reward given to employees based on their work performance or the achievement of specific goals. This bonus is typically offered in addition to regular salary and can vary in amount depending on individual or company performance metrics. Companies often use performance bonuses to motivate employees, encourage productivity, and align individual efforts with overall business objectives. These bonuses can be awarded annually, quarterly, or even monthly, and may be tied to factors such as sales targets, project completion, or overall company profitability.