What is the difference between spiff and bonus?

Definitions

spiff

- Referring to a commission or bonus paid to salespeople for selling a particular product or service.

- Talking about an incentive or reward given to employees for achieving a specific goal or target.

- Describing a financial or non-financial benefit given to someone as a form of motivation or recognition.

bonus

- Referring to an additional payment or reward given to an employee on top of their regular salary.

- Talking about a financial or non-financial incentive given to someone for achieving a specific goal or target.

- Describing an unexpected or extra benefit or advantage given to someone.

List of Similarities

• 1. Both spiff and bonus are forms of incentives or rewards.
• 2. Both can be financial or non-financial.
• 3. Both are given to motivate or recognize someone's efforts.
• 4. Both can be tied to specific goals or targets.
• 5. Both are meant to encourage better performance or behavior.

What is the difference?

• 1. Recipients: Spiffs are typically given to salespeople, while bonuses can be given to any employee.
• 2. Timing: Spiffs are often given immediately after a sale, while bonuses are usually given at the end of a period, such as a year or quarter.
• 3. Amount: Spiffs are usually smaller than bonuses and are tied to a specific sale or transaction, while bonuses can be larger and more general.
• 4. Purpose: Spiffs are meant to incentivize sales, while bonuses can be given for various reasons, such as meeting targets, outstanding performance, or loyalty.
• 5. Flexibility: Bonuses are more flexible in terms of how they can be used, while spiffs are typically tied to a specific product or service.

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Remember this!

Spiff and bonus are both forms of incentives or rewards given to motivate or recognize someone's efforts. However, the difference between them lies in their recipients, timing, amount, purpose, and flexibility. Spiffs are typically given to salespeople immediately after a sale and are tied to a specific product or service, while bonuses can be given to any employee at the end of a period and can be more general in nature.